BofA Fights To Keep $500M Lehman Setoff

Law360, New York (May 23, 2011, 5:48 PM EDT) -- Bank of America NA on Monday challenged a New York bankruptcy court ruling that requires it to return more than $500 million to Lehman Brothers Holdings Inc. rather than use the account to set off other Lehman debts.

U.S. Bankruptcy Judge James Peck on Friday finalized the November summary judgment granted to Lehman, prompting BofA to appeal the ruling rather than pay the roughly $502 million, plus 9 percent interest, that Lehman is due.

The bankruptcy court faulted BofA in November for seizing the $500 million...
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