Citigroup Restates Earnings After Writing Down Revlon Loan | The Business of Beauty

Revlon display. Shutterstock

Citigroup Inc. restated fourth-quarter results after writing down a portion of a loan to Revlon Inc. it now owns after losing a court battle.

The bank said in a regulatory filing on Friday that it now has rights as a creditor to the troubled cosmetics giant after it lost a court battle over a payment mistakenly sent to a band of lenders to Revlon in August. It’s since written down a portion of the loan.

Separately in the filing, the bank said losses “related to certain legal matters” forced it to boost operating expenses in its institutional clients group by $390 million in the fourth quarter. That meant Citigroup’s net income for the final three months of the year came to $4.3 billion, compared with the $4.6 billion it reported in January.

Citigroup was trying to send a periodic interest payment to a group of Revlon’s lenders in August when instead it transferred $900 million, an amount equal to the full principal of the loan plus interest.

“After a careful assessment of the incident, Citi immediately put in additional controls to prevent similar loan disbursement errors in the future, while also embarking on a major upgrade of the loan infrastructure and controls,” the bank said in Friday’s filing.

While some lenders opted to return roughly $389.8 million, the bank sued 10 fund managers to recoup the remaining funds.

After a trial that was closely watched across Wall Street in December, Citigroup unexpectedly lost the case earlier this month. The bank continues to believe it is entitled to the funds and has said it will appeal.

Separately on Friday, the firm said regulatory agencies in the Asia Pacific region are probing the firm’s equity sales trading desks.

The probes are tied to facilitation trades, or transactions in which the bank “trades fully or partially as principal,” Citigroup said in the filing. The firm said it is cooperating with the investigation.

By Jenny Surane.

Credit: Source link


Please enter your comment!
Please enter your name here




See Their Transformations Over The Years – Hollywood Life

And just like that, Angelina Jolie and Brad Pitt’s children have grown up before our very eyes. See how Maddox, Pax, Zahara, Shiloh,...

Keanu Reeves Goes Shirtless On Beach In Malibu — Pics – Hollywood Life

Keanu Reeves was a hunky sight to see when he spent the first weekend of the new year taking in some waves and...

US Social Trends for 2021

Executive SummaryAfter a tumultuous year that included a divisive US election, a pandemic, and racial justice protests, will 2021 be quieter for social...

MrBeast net worth breakdown

I found this blog about MrBeast that I thought was super interesting! submitted by /u/SnooGuavas8972 ...