2nd Circ. Favors Barclays In $6B Lehman Collateral Fight

Law360, New York (August 5, 2014, 12:43 PM EDT) -- The Second Circuit on Tuesday affirmed that Barclays PLC deserves $5.9 billion in Lehman Brothers Inc. trading collateral, ruling against the LBI liquidating trustee on two long-contested aspects of Barclays’ hectic crisis-era purchase of the brokerage.

A unanimous panel upheld U.S. District Judge Katherine B. Forrest’s interpretation of the complicated contracts surrounding Barclays’ 2008 deal for LBI, which was hastily pushed through amid widespread market panic in the aftermath of the collapse of its parent Lehman Brothers Holdings Inc.

The decision ends a long battle between...
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