“Citi has no right to get your money back. On the contrary, the defendants have the right to keep the money“. Cold shower for this great American bank that by mistake has paid millions of dollars to various investment funds,” he explains Western france. Last August, Citigroup had transferred a total of 900 million dollars: if 400 million dollars were returned, the court estimated, on Tuesday, February 16, that mutual funds were not required to return the rest of the money.
New York Judge Jesse Furman recalled that US law “generally advocates” the reimbursement of transfers made in error, but that New York State has “exceptions, one of which applies in this case”. The investment funds “were convinced, in good faith, that the (…) payments received were early repayments of loans granted to Revlon,” the magistrate explained. Result: “Citi has no right to get your money back. On the contrary, the accused have the right to keep the money, “he concluded.
A decision widely rejected by Citigroup that said it “profoundly disagreed” with this verdict, although it indicated your willingness to appeal. “We believe that we have the right to recover the funds and we will continue to seek to recover them in full,” the establishment wrote in an email to AFP.
Keep in mind that the big bank ordeal doesn’t stop there. Last October, this case prompted US authorities to impose a fine of $ 400 million and “unusually tight” control. In question: flawed risk management.