BofA Posts $595 Million Bond in Lehman Bankruptcy
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Bank of America Corp., ordered by a bankruptcy judge to return deposits taken from Lehman Brothers Holdings Inc. and pay interest, posted a $595 million bond in court in Manhattan, according to a filing.
Bank of America was a lender to Lehman in September 2008, and took a $500 million deposit after the bankruptcy to offset an unrelated loan, according to court papers. U.S. Bankruptcy Judge James Peck has said he will consider whether to impose sanctions on Bank of America for ignoring a law that stops lenders from acting to recover their loans from companies in bankruptcy.