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Citigroup Inc. said on Friday it recorded an additional $ 390 million in operating expenses in the fourth quarter of 2020, after a U.S. federal judge ruled that it had no right to recover the money it had mistakenly transferred to creditors. from Revlon Inc. last year.
As a result, Citigroup revised its fourth quarter earnings to $ 1.92 per share, from $ 2.08, according to a document.
CITIGROUP ‘FAILURES’ CITED IN THE CEO’S PAYMENT AS IT IS FOUND FOR EXIT
In August, an “operational error” caused Citigroup to send $ 893 million of its own funds to the cosmetics company’s creditors, appearing to repay a loan that would mature until 2023, when it intended to send only $ 7.8 million in interest. .
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| Ç | CITIGROUP, INC. | 65.88 | -1.53 | -2.27% |
So far, $ 389.8 million has been repaid to the bank at its request, but some creditors have kept the funds, prompting the bank to wage a legal battle against a group of hedge funds to recover the rest.
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This month, US District Judge Jesse Furman in Manhattan said the transfers were complete transactions not subject to revocation and refused to force the defendants to return the funds. Citigroup is planning to fight the decision.
“I believe we have good reason for an appeal and we will continue with that,” said CFO Mark Mason at an industry conference on Thursday.
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The unprecedented error was the last misstep involving Citigroup’s internal controls, which federal regulators fined $ 400 million in October for long-standing shortcomings.
Deficiencies in Citigroup’s internal controls were a factor in Chief Executive Mike Corbat’s early retirement planned for this month.
Jane Fraser will take over the company on Monday.