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
-
Why Mahama must keep an eye on the environment in ‘resetting’ Ghana
34 seconds -
Macdonald Oliver Kofi Ntsiful Baiden
2 minutes -
Kenya Airways applauds ISRQ 2024 champions as they fly to Dubai for Edu-Fun trip
14 minutes -
2009 Black Satellites World Cup winning squad invited to collect matured investment cheques
48 minutes -
Gradual reduction of E-Levy better than complete abolishment – Dr Kwame Asante
51 minutes -
It’s a clever appointment – Franklin Cudjoe on 1st batch of ministerial nominees
1 hour -
GPL: Yaw Preko confident Nsoatreman will avoid relegation
1 hour -
Rationalize Ghana’s tax system – AGI tells government
2 hours -
StarTimes set to return as broadcast partners after successful talks with GFA
2 hours -
Artiste of the Year conversation without me is ignorance – Amerado
2 hours -
Frimpong Manso appointed Head Coach of Black Starlets
3 hours -
2025 budget will test Mahama’s push for private sector partnership – Dalex Finance CEO
3 hours -
Why King Paluta deserves TGMA Artiste of the Year award
3 hours -
A lawyer’s lawyer who rises above politics – Appiah-Kubi on Ayine
3 hours -
‘I will respond at the appropriate time’ – Anim Addo on GFA charge
4 hours