Lehman, Citi Settle $2 Billion Financial Crisis-Era Dispute
- N.Y. bank to return $1.74 billion in boon to creditors
- Lender held deposits after investment bank’s 2008 bankruptcy
The sign outside the Lehman Brothers company's headquarters in New York in 2008.
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Citigroup Inc. and the wreckage of Lehman Brothers Holdings Inc. have resolved a fight over $2.1 billion that dates to the financial crisis, while quietly burying a key question about derivatives-trading practices.
Citigroup agreed Friday that it will give back $1.74 billion to the estate of the failed New York-based investment bank. Citigroup had kept about $2.1 billion that Lehman had on deposit with it for trades on everything from interest rates to corporate and sovereign debt at the time of the 2008 bankruptcy.