Last year, Citigroup accidentally credited a customer’s account with a staggering $81 trillion instead of the correct amount of $280. This error, which happened in April, was overlooked by two employees but caught just 90 minutes later. The Financial Times reported that the mistake was reversed a few hours after posting and was categorized as a “near miss” by the bank, which notified the Federal Reserve and the Office of the Comptroller of the Currency.
This incident highlights ongoing issues at Citigroup, which has faced several operational mistakes in recent years. In a statement, Citi emphasized that although the amount was enormous, their controls quickly identified the error between two internal accounts. They also assured that their systems would have prevented any funds from leaving the bank. The bank reiterated that there was no negative impact on their operations or their clients.
Citi has experienced multiple near misses, where incorrect amounts were processed but later rectified. Last year, they reported ten near misses involving amounts of $1 billion or more, following thirteen such errors the previous year. These incidents have sparked ongoing efforts to improve their internal processes.
The bank is working to rebuild its image after a significant mistake from five years ago, when it inadvertently sent $900 million to creditors related to a Revlon debt dispute. This error led to the resignation of former CEO Michael Corbat and resulted in hefty fines along with regulatory demands for change.
Jane Fraser, the current CEO, has made it clear that enhancing risk management and internal controls is a top priority. However, despite these assurances, the bank was hit with a $136 million fine last year for not making sufficient progress in addressing these issues.
Citi continues to face challenges, but they remain committed to learning from past errors and improving their practices.
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