Lehman Hits FHLB Cincinnati With $64M Suit Over Swaps

Law360, New York (April 18, 2013, 5:16 PM EDT) -- A unit of Lehman Brothers Holdings Inc. on Wednesday hit the Federal Home Loan Bank of Cincinnati with a breach of contract suit demanding $63.9 million connected to 87 interest-rate swaps and options transactions that fell apart when it entered bankruptcy.

Lehman Brothers Special Financing Inc. says the bank violated an agreement between the two by paying only $13.7 million when the transactions were terminated on account of Lehman's Chapter 11 filing in September 2008. The financing unit said it was owed $77.6 million and that...
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