BofA Reduces Lehman Claims By $4.5B, Backs Ch. 11 Plan

Law360, New York (September 29, 2011, 2:07 PM EDT) -- Bank of America Corp. on Wednesday in New York agreed to reduce by about $4.5 billion its derivative claims against Lehman Brothers Holdings Inc. over thousands of securities transactions it performed for the failed investment firm, and backed Lehman's reorganization plan.

The bank will also return $356 million to Lehman and drop its appeal of a $500 million judgment related to collateral it took just before Lehman's collapse. It will also knock $3 billion off the claims of subsidiary Merrill Lynch International while signing on to...
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