Citigroup Inc. and the wreckage of Lehman Brothers Holdings Inc. have resolved a fight over $2.1 billion that dates to the financial crisis proving that all legal matters get resolved one way or another. According to news sources, Citigroup agreed Friday that it will give back $1.74 billion to the estate of the failed New York-based investment bank. Citigroup had kept about $2.1 billion 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.
“Citi is pleased to have reached a settlement with Lehman that resolves all of the parties’ outstanding disputes,” a Citigroup spokeswoman said in a statement. The pact “furthers management’s goals of resolving legacy matters stemming from the financial crisis and focusing on Citi’s strategic business objectives,” she said.
Lehman is also pleased, a spokeswoman said. In court papers, Lehman managing director Steven Mullaney said the pact is “reasonable in light of the complexities of the litigation” and the cost of fighting to the end.
Oh good, everyone is “pleased.” …And especially “pleased” will be the many creditors currently at the door of Lehman Bros trying to get a piece of this new settlement.
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More on the Case:
Lehman, Citi settle $2 billion financial crisis-era dispute