For Firms That Got Citi’s $900 Million, It’s a Shot at Payback

  • Lenders increasingly accuse loan agents of favoring borrowers
  • Banks being dragged into intensifying credit-market brawls
Pedestrians walk past a Citigroup Inc. Citibank branch in New York.Photographer: Michael Nagle/Bloomberg
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If Citigroup Inc. was looking to create a drama big enough to compete with the pandemic and U.S. elections for Wall Street’s attention, it couldn’t have written a better script.

The bank allegedly facilitated a debt deal that left a group of lenders fuming, then accidentally sent those firms hundreds of millions of dollars that it had to, politely, ask to be returned.