Lehman Took $41.5M In Collateral: Lending Agency

Law360, New York (July 30, 2009, 2:03 PM EDT) -- Congressionally chartered financing agency the Federal Home Loan Bank of Pittsburgh has sued Lehman Brothers Holdings Inc. seeking to recover $41.5 million in collateral for derivative transactions the agency alleges should have been segregated, but was instead mingled with other Lehman funds.

FHLBank Pittsburgh lodged an adversary proceeding in the Lehman Brothers Chapter 11 case on Wednesday in the U.S. Bankruptcy Court for the Southern District of New York accusing the firm of unjust enrichment and conversion and asking to have the $41.5 million secured in...
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