Lehman Inks Deal On Fannie, Freddie Claims

Law360, New York (December 1, 2011, 7:52 PM EST) -- Lehman Brothers Holdings Inc. told a New York bankruptcy court Tuesday that it had agreed to reserve $1.2 billion in cash for priority claims asserted by federal home loan mortgage guarantor Freddie Mac.

The settlement resolves the way that billions of dollars in claims asserted by both Freddie Mac and Fannie Mae will be treated in Lehman’s massive Chapter 11 case. U.S. Bankruptcy Judge James M. Peck must still approve the agreement, and it could face objections from other parties in the case.

These other parties...
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