Zombie Lehman Stalks Nonprofits for Swaps Payments

The failed bank seeks added payments for swaps contracts
Photograph by Diane Diederich/Getty Images

Almost five years after Lehman Brothers Holdings filed for bankruptcy and set off the global financial crisis, managers of the bank’s estate are demanding millions of dollars from retirement homes, colleges, and hospitals. As it seeks to collect more money to pay creditors, Lehman now says it was shortchanged by scores of clients, including nonprofits, that were forced to pay to settle derivatives contracts that were unwound after the firm filed for Chapter 11 protection.

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