FINANCIAL CRISIS FALLOUT
Citi to pay back $1.74bn to Lehman to end 10-year dispute
The settlement comes 40 days into an epic trial in New York that began in April
New York — Citigroup and the wreckage of Lehman Brothers have resolved a fight over $2.1bn that dates to the financial crisis. Citigroup has agreed to give back $1.74bn to the estate of the failed investment bank. It had kept $2.1bn that Lehman had on deposit with it for trades on everything from interest rates to corporate and sovereign debt at the time of the 2008 bankruptcy. That will be a boon for Lehman’s unsecured creditors in the 10-year-old bankruptcy case. The settlement came 40 days into an epic trial in New York that began in April. It shed new light on the frenzied weekend before Lehman’s bankruptcy filing on September 15 2008. Lehman brought up messages from Citigroup traders, saying comments such as "ringing the register, homey" showed how the bank tried to feast on Lehman’s carcass. Citigroup said it was following accepted standards on closing out trades. "Citi is pleased to have reached a settlement with Lehman that resolves all of the parties’ outstanding disputes,"...
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