Citigroup nearly credited client with $81 trillion instead of $280

Citigroup nearly credited a client $81 trillion due to a system error.

: Citigroup almost credited a client with $81 trillion instead of the intended $280 due to a combined error of human oversight and system quirks. The mistake passed two levels of scrutiny and was only caught by a third auditor 90 minutes later. This incident highlights ongoing operational challenges Citigroup faces as it struggled to resolve them despite regulatory pressures.

Citigroup narrowly avoided sending $81 trillion instead of $280 to a client's account, a mistake that occurred in April. The error, which made it past two levels of scrutiny, was eventually caught by a third auditor 90 minutes later after an anomaly was detected in the balances.

The issue stemmed from human error combined with a cumbersome user interface in a rarely used backup system, with the pre-populated 15 zeros being overlooked. Despite being quickly resolved and no funds leaving the bank, this incident has brought to light operational challenges that Citigroup is attempting to address amid regulatory scrutiny.

The incident was promptly reported to the Federal Reserve and Office of the Comptroller of the Currency. Revealed in an internal report, it is part of a wider pattern of near misses as Citigroup has been under regulatory pressure for operational mishaps, reflecting on the bank's struggle to resolve such issues even under CEO Jane Fraser.

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