Citigroup Restates Earnings After Writing Down Revlon Loan

(Bloomberg) -- Citigroup Inc. said regulatory agencies in the Asia Pacific region are probing the firm’s equity sales trading desks.

The probes are tied to facilitation trades, or transactions in which the bank “trades fully or partially as principal,” Citigroup said in its annual regulatory filing on Friday. The firm said it is cooperating with the investigation.

The bank also provided an update on the $894 million it mistakenly sent to a band of lenders to the troubled cosmetics giant Revlon Inc. in August. Some lenders opted to return roughly $389.8 million, and the bank sued 10 fund managers to recoup the remaining funds.

After a trial that was closely watched across Wall Street in December, Citigroup unexpectedly lost the case earlier this month. The bank continues to believe it is entitled to the funds and has said it will appeal.

“As a result of the court’s decision, Citi now has rights as a creditor related to the Revlon loan,” Citigroup said in the filing.