Citigroup Owes Lehman Brokerage $1 Billion, Trustee Says
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Citigroup Inc., which seized $1 billion pledged to it by Lehman Brothers Holdings Inc.’s brokerage and froze $300 million of the defunct firm’s assets, must pay the money back because it wasn’t protected by so-called ‘safe harbor’ law governing securities transactions when it set off the funds against money owed, the trustee for the bankrupt brokerage said in a court filing yesterday.
Citigroup has said the trustee’s lawsuit fails on “multiple” legal grounds.