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Lehman Sues St. Louis University Over Swap Deal: Bankruptcy

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(Bloomberg) -- Lehman Brothers Holdings Inc., now filing lawsuits and collecting assets for the benefit of creditors, isn’t giving a free pass to non-profits like colleges who don’t pay up for early terminations of interest-rate swaps in which the former investment bank was “in the money.”

Lehman filed suit on Dec. 23 against Saint Louis University, the counter party on five interest-rate swaps at the start of Lehman’s bankruptcy in 2008. According to Lehman, the university terminated the swaps early and paid Lehman about $25 million.