Day: August 27, 2020

Citi’s $900 Million Misfire Happened During Software Switch

(Bloomberg) — For years Citigroup Inc. has been an anomaly among big banks, relying on an obscure piece of software it helped develop to manage loan payments. Just as the bank tried to replace it, things went terribly wrong.

The saga began emerging in court this week as the firm blamed human errors for mistakenly sending $900 million to a fleet of hedge funds reluctant to return it. But the backdrop, according to people with knowledge of what happened, is a tale of arcane technology stretching back to the 1990s. It culminates with the bank’s decision last year to replace software with the industry standard. That rollout is still under way, adding to upheaval at a time when employees are working from home.

An internal review at the bank found humans manually operating the old software were ultimately at fault, and that their remote locations weren’t the problem, one person

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