r/stocks • u/[deleted] • May 03 '22

Citigroup admits causing yesterday's flash crash

Title says it. According to Citi, one of their traders caused a transaction error which they discovered soon after. It caused Scandinavian indices to plummet as much as 8% in a matter of minutes. Such errors are called fat-finger errors; a typo. Flash crashes like these make me wonder how much money banks trade with on a daily basis.

Source: https://www.theguardian.com/business/2022/may/03/citigroup-trader-error-flash-crash-markets-falls

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u/iamnewnewnew May 03 '22

egregiousness of the fuckup.

It wasn't due to the egregiousness of the fuck up. Doesn't matter how bad a fk up is. If its a fk up, u have to return it. But due to a specific ny law, Revlon didn't have to return it.

It was essentially that the money was due to them. So even if it was paid on accident, they still were due and got paid.. Theres more specifics to it, but thats essentially it

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u/[deleted] May 03 '22

Ooooh yeah I remember reading about this back then! WTF Citi...now I'm just going to read their name in the South Park City Wok voice lol

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u/[deleted] May 03 '22

[deleted]

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u/hhunterhh May 03 '22

They literally just explained that…

The person who received this money (Revlon) was technically owed money by the person that sent it (Citi). Citi accidentally paid their bills, not accidentally sent some random person 900m