Citi’s $900 Million Blunder Raises Stakes in Revlon Showdown

Even for Citigroup Inc., it was big money. On Wednesday, loan operations staff at the New York bank wired $900 million, seemingly on behalf of Revlon Inc., to lenders of the troubled cosmetics giant controlled by billionaire Ron Perelman.

It was a mistake for the ages -- a “clerical error,” as Citigroup told lenders -- that’s now plunged the bank into a battle between the Perelman empire and a corps of sharp-edged investment funds that have become its impatient creditors.

One financier involved likened the surprise payment to finding a fortune on the sidewalk. And, as of ...