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Lehman Europe, Lehman Bankhaus settle client money and house issues
By Caroline Salls
Pittsburgh, March 20 - Lehman Brothers International (Europe) (LBIE) and Lehman Brothers Bankhaus AG (LBB) signed a settlement agreement on March 14 that concludes all matters between the estates both from a client money and house perspective and brings to a close multi-faceted litigation in the German courts, according to a news release.
Under the settlement, LBB will admit a €469 million unsecured claim from LBIE, including a €403 million client money claim and a €66 million house claim.
LBIE's remaining €403 million client money claim will rank as a subordinated claim against LBB.
In addition, LBIE will release a £600 million reserve related to the LBB inbound claim, which has been withdrawn, and LBIE will retain some ring fenced cash and securities.
LBIE's joint administrators said greater disclosure on the financial implications of this settlement will be available in a progress report to be published in April.
New York-based Lehman Brothers Holdings Inc. was the fourth-largest investment bank in the United States. The company emerged from bankruptcy on March 6, 2012.
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