Citigroup mistakenly credited the customer account with $81 trillion Instead of $280 Citigroup mistakenly credited the customer's account with $81 trillion last year when it meant to send just $280.
The payment, which took place most recent April, was missed by two employees but caught 90 minutes after it was posted, the Financial Times first stated Friday. It was reversed several hours later and said to the Federal Reserve and Office of the Comptroller of the Currency as a "near miss."
The contingency is the last mistake revealed by the Wall Street bank, which is struggling to defeat the series of operational errors in recent years.
"Despite the fact that the payment of this size could not in point of fact have been executed, our detective controls promptly identified the inputting error between two Citi ledger accounts, and we reversed the entry," Citi revealed in the statement to NBC News. "Our preventative controls would have also stopped any funds leaving the bank. While there was no impact to the bank or our client, the episode underscores our abide efforts to abide eliminating manual processes and automating controls through our Transformation."
Citi neither validated nor provided comment on the number of near misses it has experienced.
Near misses pass the time when a bank processes the wrong amount but is able to recover the funds. The bank suffered 10 near misses of $1 billion or more previous year and 13 in the year prior.
The bank has been working to repair its reputation since it sent $900 million in error to creditors engaged in the contentious battle over the debt of cosmetics group Revlon five years ago — which led to the ousting of former CEO Michael Corbat, as well as huge fines and regulatory consent orders requiring Citi to fix the issues.
Corbat's successor, Jane Fraser, has reported amending risk and controls is a top priority. The bank was still fined $136 million by regulators most recent year for not making enough progress on the improvements.
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Tag: Citigroup mistakenly credited the customer account with dollar 81 trillion Instead of dollar 280
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Published 3/2/2025