Lehman agency mortgage security status resolved by Freidman, Billings, Ramsey

By Caroline Salls

Pittsburgh, Oct. 9 - Friedman, Billings, Ramsey Group, Inc. has resolved the status of an agency mortgage security under a repurchase agreement with Lehman Brothers, Inc., according to a Friedman, Billings, Ramsey news release.

The group said it does not expect to incur more than $4 million in costs in connection with the resolution.

As previously reported, Friedman, Billings, Ramsey Group filed a lawsuit against Lehman Brothers in which FBR Group is seeking the return of a $250 million agency mortgage security under a repurchase agreement between the two companies.

FBR said in a previous news release that the lawsuit and request for return of the security are part of its normal, ongoing management of its assets and capital and were necessitated by an inability to secure satisfactory responses from various parties associated with Lehman's liquidation proceedings.

New York-based Lehman Brothers Holdings is the fourth largest investment bank in the United States. The company filed for bankruptcy on Sept. 15 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 08-13555.

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