Lehman Suit Seeks Return of $2 Billion in 'Phantom' Citi Fees
- Trial in New York centers on valuation of derivatives trades
- ‘We deviated just one night,’ Citi trader said in recording
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Almost a decade after the global financial crisis, the fate of another $2 billion from the wreckage of Lehman Brothers Holdings Inc. is about to be determined.
The failed New York investment bank is seeking to recoup the cash from one of its old derivatives trading partners, Citigroup Inc. In a trial that started this week in Manhattan bankruptcy court, Lehman alleges Citigroup created “phantom transaction costs” in order to justify a bankruptcy claim that would allow it to keep $2 billion in cash Lehman had deposited on the trades.