Citigroup Incorrectly Credits $81T in Client's Account in "Near Miss"

Core Viewpoint - Citigroup, Inc. experienced a significant operational error, mistakenly crediting a client's account with $81 trillion instead of the intended $280, which could hinder the bank's efforts to demonstrate improvements in its operational issues to regulators [1][8]. Group 1: Details of the Error - The error occurred in April 2024 and was overlooked by two officials before being caught by a third employee over an hour later [2]. - The erroneous transaction was reversed several hours after detection, and Citigroup informed regulators that it was a "near miss" since no funds left the bank [3][4]. Group 2: Historical Context of Errors - Citigroup reported ten near-miss incidents in the previous year, involving incorrect amounts totaling around $1 billion or more, which were ultimately recovered [5]. - The bank faced a $79 million fine from British regulators due to a 2022 incident where a trader mistakenly sold $444 billion worth of stocks instead of $58 million [6]. Group 3: Regulatory Scrutiny and Challenges - Citigroup has been under regulatory scrutiny, with a $136 million fine imposed in July 2024 for failing to address risk control and data management issues identified in 2020 [9]. - The bank was also required to improve its "living wills" and address deficiencies in evaluating default risks of trading partners [10][11]. Group 4: Operational Transformation Efforts - Citigroup's CEO has prioritized fixing regulatory issues, but the series of near-misses indicates ongoing challenges in resolving operational problems [8]. - The bank's shares have gained 33.3% over the past six months, outperforming the industry growth of 26.5% [12].