Lehman Loses Bid For Setoff Of $2B Citi Claim

Law360, New York (October 23, 2013, 2:05 PM ET) -- The judge overseeing Lehman Brothers Holdings Inc.’s liquidation on Wednesday rejected its bid to force Citigroup Inc. to accept a setoff of its $2 billion claim against the failed investment bank’s estate, saying the matter was not ripe for consideration.

Lehman sought to exercise a provisional setoff of Citgroup’s claims — against a $2 billion deposit Lehman had made at Citigroup prior to its collapse — and to cut off Citigroup’s right to potentially hundreds of millions of dollars in interest on its claims.

Although U.S....
To view the full article, register now.