NEW YORK (AFP, BLOOMBERG) - Citigroup unexpectedly lost a legal battle to recover half a billion dollars in mistaken payments it sent out, according to a US judgment that called the debacle "one of the biggest blunders in banking history." The case centers on payments totaling some US$500 million (S$664 million) Citigroup sent in August 2020 to 10 financial companies who were parties to a term loan to cosmetic company Revlon. Citi, the loan's administrative agent, mistakenly paid back the US$900 million principal to the members of the lending consortium, rather than interest payments. Citi quickly realised the error, but was rebuffed the following day by the lenders, which included Allstate Investment and Greywolf Loan Management. These entities thought Revlon was repaying the loan early, said US District Judge Jesse Furman. Because defendants in the case believed "in good faith and with ample justification" that the payments were for the full Revlon loan, "defendants' clients are entitled to keep the money," Judge Furman said in a 105-page ruling. Citi plans to appeal the decision. "We strongly disagree with this decision and intend to appeal," a Citi spokeswoman said in an email....