Lehman brokerage settles $46 billion in affiliate claims
LONDON (REUTERS) - The US brokerage unit and a European unit of the former Lehman Brothers Holdings Inc said they settled a dispute over US$38 billion (S$46.5 billion) in claims over client and creditor assets, a major step towards allowing customers and creditors to recover money.
Lehman Brothers Inc and Lehman Brothers International Europe (LBIE) announced the agreement in principle in a joint statement on Friday.
The accord requires approval by US Bankruptcy Judge James Peck in Manhattan as well as by the English High Court.
On Thursday, the US brokerage unit announced a separate agreement with its former Swiss-based derivatives unit Lehman Brothers Finance AG. Taken together, the agreements resolve two of the biggest outstanding claims facing the US brokerage unit.