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
-
Medical Council to enforce specialist distribution nationwide
15 mins -
Fire guts old Fadama market, man reportedly loses GHC800,000
19 mins -
Nacee bemoans low performance fees for gospel artistes
20 mins -
We don’t operate investment platform – GNPC
37 mins -
Ghana Fact-checking Coalition condemns disinformation on voting by Wontumi FM broadcaster
38 mins -
IFRS 17 will augment and accelerate NIC’s efforts to implement risk-based capital – Deloitte
40 mins -
IFRS 17 is one of biggest changes to financial reporting standards in insurance industry – Deloitte
54 mins -
Enimil Ashon: Whose polls do you believe: ‘Global Info or Prof Sarpong?
57 mins -
Ghana Climate Innovation Centre welcomes 25 businesses into Cohort 10
1 hour -
ADB will continue to enhance customer value and service experience – Managing Director
1 hour -
Colour Cure Exhibition highlights art’s role in healing and advocacy
1 hour -
GPL 2024/25: Aduana FC sack coach Yaw Acheampong after poor run
1 hour -
John Dumelo pays ¢10,400 in outstanding fees for visually impaired law student facing deferral
1 hour -
CHRAJ clears Rev. Kusi Boateng of conflict of interest, says he doesn’t own 2 passports with different names
1 hour -
We’ll restore hope by cutting down taxes and avoiding unreasonable borrowing – Ato Forson
1 hour