American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Politics

Citigroup’s $81 trillion blunder: how a ‘fat finger’ mistake was caught

by admin March 2, 2025
March 2, 2025
Citigroup’s $81 trillion blunder: how a ‘fat finger’ mistake was caught

Citigroup narrowly avoided what could have been one of the largest banking blunders in history after it mistakenly credited a client’s account with $81 trillion instead of the intended $280.

The Financial Times reported that the error was detected only after two employees overlooked it, with a third employee catching and correcting the mistake 90 minutes later.

Fortunately, no funds left the bank.

The US banking giant disclosed the incident to financial regulators, including the Federal Reserve and the Office of the Comptroller of the Currency, as part of its internal reporting procedures.

A near-impossible transaction

A transaction of $81 trillion is so vast that it would be unlikely to pass through any banking system without immediate red flags.

The sheer scale of the error was highlighted by comparisons with global financial benchmarks—the total US stock market was valued at $62 trillion at the end of 2024, while global wealth stood at approximately $450 trillion, according to UBS.

To put it into perspective, the erroneously credited sum would have been enough to buy all major US technology companies at a premium or acquire the assets of Elon Musk, the world’s richest individual, more than 200 times over.

A Citi spokesperson addressed the incident, stating, “Despite the fact that a payment of this size could not actually have been executed, our detective controls promptly identified the inputting error between two Citi ledger accounts and we reversed the entry. 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 continued efforts to continue eliminating manual processes and automating controls through our transformation,” the spokesperson added.

Citi’s history of costly errors

This is not the first time Citigroup has been at the center of an embarrassing transaction error.

In 2020, the bank mistakenly wired $900 million to creditors of Revlon instead of making a routine interest payment.

Several hedge funds, including Brigade Capital Management, HPS Investment Partners, and Symphony Asset Management, initially refused to return the funds, leading to a protracted legal battle.

Citi fought in court for two years to recover the money, with a significant portion remaining in dispute until a 2022 court ruling finally enabled the bank to reclaim the remaining $504 million from creditors.

The episode contributed to leadership changes at the bank, including the departure of then-CEO Michael Corbat.

Other instances of “accidental transfers” by banks

Citi is not the only bank to have blundered on the front of money transfer.

In 2021, a Louisiana couple found their Chase bank account credited with $50 billion due to a bank error.

It took four days for the bank to correct the mistake, making the couple one of the richest families in the world for a brief period.

“That’s not like a one zero error or a two zero error, that’s somebody that fell asleep on the keyboard error,” Darren James, the beneficiary of the amount told CNN in a report.

The post Citigroup’s $81 trillion blunder: how a ‘fat finger’ mistake was caught appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
GM’s EV market share doubles to 12%: will Trump’s tariffs slow momentum?
next post
Marvell stock is overvalued: will MRVL rise or fall after earnings?

Related Posts

Obama again stepping into role as Joe’s closer...

June 27, 2024

Here are the massive tax increases coming your...

April 16, 2024

‘Squad’ member caught at fundraiser hosted by Islamic...

May 8, 2024

CEO wins autographed golden Donald Trump sneakers after...

February 20, 2024

RFK Jr. re-ups Trump debate challenge, suggesting venue...

May 9, 2024

Trump guilty verdict reveals split among former GOP...

June 2, 2024

Biden ignores Palestinian terror on West Bank as...

February 5, 2024

Harris rapidly consolidates Democrats’ support, and here’s what...

August 2, 2024

Israeli intelligence confirms dozens of hostages thought to...

February 7, 2024

5 recent gaffes by President Biden

June 7, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved