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Citigroup and Lehman Settle Dispute Over Currency Trades

The disputes arose from Citigroup Inc.’s role in clearing and settling foreign exchange transactions for Lehman Brothers Holdings Inc. and its affiliates before and during the week of Lehman’s September 2008 bankruptcy. Photographer: Scott Eells/Bloomberg
The disputes arose from Citigroup Inc.’s role in clearing and settling foreign exchange transactions for Lehman Brothers Holdings Inc. and its affiliates before and during the week of Lehman’s September 2008 bankruptcy. Photographer: Scott Eells/Bloomberg

May 15 (Bloomberg) -- Citigroup Inc. can be granted a $1.2 billion claim against Lehman Brothers Holdings Inc.’s defunct brokerage and will pay an affiliate of the Lehman parent $167 million to settle a dispute over amounts owed on foreign-exchange transactions, a judge ruled.

The disputes arose from Citigroup’s role in clearing and settling foreign exchange transactions for Lehman and its affiliates before and during the week of Lehman’s September 2008 bankruptcy. Larger sums than those settled remain in dispute, the parties said in the document, published in an order signed yesterday in federal court in Manhattan.

Overseen by a new board since its emergence from bankruptcy in March 2012, Lehman is resolving disputes and cutting claims to continue paying approved creditors. The brokerage, being separately liquidated, is planning its first payment to its former clients.

The dispute with Citigroup is Lehman Brothers Holdings Inc. v. Citibank N.A, 12-0l044, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net.

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.

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