Days after Citigroup Inc. made headlines for accidentally sending $900 million to a group of lenders, a Bank of America Corp. customer in Massachusetts opened his account to find an even bigger cash infusion: $2.45 billion.
But the money was never really there.
“This was a display error and nothing more than that,” Bank of America spokesman Bill Halldin said. “It’s been corrected.”
The customer, psychiatrist Blaise Aguirre, said he initially figured Bank of America would discover the error itself. When that didn’t happen, he reached out to his relationship manager to inquire about the mysterious money showing up on both the web and his phone’s mobile app.
This week, after being contacted by Bloomberg, the bank fixed the issue with Aguirre’s Merrill Lynch account.
It hasn’t been as easy for Citigroup, in its role as administrative agent on a loan to Revlon Inc., to erase mistaken payments sent to the cosmetic giant’s lenders. While some willingly sent back the funds, the bank has been locked in a bitter legal battle with hedge funds including Brigade Capital Management and HPS Investment Partners, which refuse to return the payments.
Benjamin Finestone, a lawyer for Brigade and HPS, told a judge in proceedings this week that the firms don’t concede the transfer was a mistake.
Citigroup, for its part, said the funds’ actions “threaten the integrity of the administrative agency function and trust in the global banking system.”
At Bank of America, the multibillion-dollar mishap wasn’t the first involving customer accounts. Earlier this month, the lender had a temporary display issue that caused some online and mobile-banking clients to see inaccurate balances. That mistake, however, wasn’t as potentially lucrative as Aguirre’s $2.45 billion mirage: Their accounts were showing balances of $0.
Latest Stories
-
CHRAJ report scratched the surface on “the double identity” of Rev. Kusi Boateng – Ablakwa
17 mins -
Elections: Akufo-Addo calls for unified front to combat political instability
29 mins -
Alidu Seidu ruled out for the season after suffering raptured ACL
29 mins -
Women advocate for tax waivers, clear timelines for implementation of economic policies
33 mins -
Disinformation, misinformation making our work tedious – NCCE
44 mins -
COP29: Africa expected more in new Climate Finance deal
48 mins -
Vice President Bawumia commends Lands Commission for digitalising its operations
50 mins -
By age 7, I knew everything I wanted to do in life – KOD
52 mins -
10 GWCL customers in Ashanti north celebrated for loyalty, timely water bill payment
52 mins -
Forex debt crisis at ECG: A threat to Ghana’s sovereignty and economic stability
53 mins -
Donewell Life Assurance rebrands to Pinnacle Life Insurance: A new era of excellence
1 hour -
NDC blames ECG’s poor revenue collection for energy sector challenges
1 hour -
MEST Africa, Mastercard Foundation celebrate EdTech Innovations at Demo Day in Accra
2 hours -
AWA reaffirms commitment with FOD Walk during Safety Week
2 hours -
Kuami Eugene hopeful he’ll be first Lynx artiste to survive after leaving the label
2 hours