Status: 03.05.2022 11:30 a.m.
A sharp drop in European stock markets is obviously due to trader error. The American bank Citigroup has admitted it – which is now threatened with financial damage.
The American bank Citigroup took responsibility for an unusual drop in prices on European stock exchanges. A London dealer made a mistake in a transaction, the institute said. “Within minutes, we identified and fixed the error,” Citigroup said.
A sharp drop in prices caused a stir on the Stockholm Stock Exchange on Monday morning. There, the leading index fell as much as eight percent at times, and the EuroStoxx 50 fell as much as three percent. Within minutes, European stock exchanges lost up to €300 billion in market capitalization.
Gaps in control systems?
After the incident, Citigroup began talks with regulators, the financial news agency reported. Bloomberg. The error could not only damage the reputation of the bank, but also have financial consequences for the American institute.
The incident brings back memories of a 2020 glitch when Citigroup mistakenly transferred $900 million to cosmetics company Revlon’s creditors. The bank was only able to recover part of the money. US regulators later fined Citigroup $400 million for failing to fix flaws in its risk and control systems.