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Citigroup Inc said on Friday it had recorded an additional $ 390 million in operating expenses in the fourth quarter of 2020 after a U.S. federal judge ruled he could not recover the money he wrongly allocated to Revlon Inc credit providers last year. .
As a result, Citigroup revised its earnings in the fourth quarter to $ 1.92 per share from $ 2.08, according to a submission.
‘FAILURES’ AT CITIGROUP CITY IN CEO, PAY NECESSARY SO HE’S GOING FOR THE EXIT
In August, an ‘operating error’ caused Citigroup to send $ 893 million of its own funds to the cosmetics company’s credit providers, apparently repaying a loan that was only payable in 2023, when it only made an interest payment of $ 7.8. million wanted to pay.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| C | CITIGROUP, INC. | 65.88 | -1.53 | -2.27% |
To date, $ 389.8 million has been repaid to the bank at his request, but some lenders have held on to the funds that led the bank to sue a group of hedge funds to recover the rest.
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U.S. District Judge Jesse Furman in Manhattan said this month that the transfers were complete transactions that were not subject to revocation and that he should not force the defendants to return the money. Citigroup plans to fight the decision.
“I believe we have good reasons for a profession, and we are going to pursue it,” Mark Mason, chief financial officer, said at an industry conference on Thursday.
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The unprecedented blunder was the latest flaw in internal controls at Citigroup, which fined federal regulators $ 400 million in October for prolonged deficits.
Deficits on Citigroup’s internal controls were a factor in Mike Corbat’s planned early retirement this month.
Jane Fraser will take over the reins of the company on Monday.