Banks Tweak Bond Covenant Language To Protect Against Repeat Of Citi’s $500M “Fat Finger” Loss
TYLER DURDEN, 10 March 2021
After a court battle that dragged on for more than a year, a New York judge shocked the investment banking community last month when they ruled that a group of Revlon creditors could keep some $500MM that they refused to return to Citi after some $900MM was accidentally transferred in what appeared to be a “fat finger”.
At the time, legal experts posited that the judge’s decision, which was based on quirks in New York State law, would force investment banks to reevaluate the wording of their bond covenants in all future deals, as the ruling created new risks that needed to be addressed. Continue reading “Article: Banks Tweak Bond Covenant Language To Protect Against Repeat Of Citi’s $500M “Fat Finger” Loss”
