Citi Lawyer Cites Mystery Bank He Says Made Even Bigger Flub
- Citi urges judge to extend freeze on its $500 million mistake
- Lawyer drops bombshell in hearing but doesn’t identify bank
Photographer: David Paul Morris/Bloomberg
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A lawyer for Citigroup Inc. told a federal judge on Friday he was aware of another big bank that had recently made an even larger payment error than its own $900 million transfer to Revlon Inc. lenders.
The lawyer, Neal Katyal, dropped the bombshell at a hearing in which Citibank urged the judge to extend a freeze on more than half a billion dollars it wired asset managers for Revlon creditors last summer -- an epic back office blunder that led to a closely watched trial. Some of them returned the money, and Citibank unsuccessfully sued 10 others for the $504 million they refused to give back. The judge froze the funds during the dispute.