Last August, Citigroup Inc. wired $900M to some hedge funds by accident. Then it sent a note to the hedge funds saying, oops, sorry about that, please send us the money back. Some did. Others preferred to keep the money. Citi sued them. Yesterday Citi lost, and they got to keep the money. I read the opinion, expecting to learn about the New York legal doctrine of finders keepers—more technically, the “discharge-for-value defense”—and I was not disappointed. But I was also treated to a gothic horror story about software design. I had nightmares all night about checking the wrong boxes on the computer.

See, the “don’t actually send the money” box next to “PRINCIPAL” is checked, but that doesn’t do anything, you have to check 2 other boxes to make it not actually send the money.


