Lehman Settles Derivatives Dispute
NEW YORK (
) --
Lehman Brothers Holdings
has reached a settlement over derivatives contracts thrown into question following its 2008 bankruptcy.
Bank of New York Mellon
(BK) - Get Report
and Australia-based
Perpetual Trustee
reached a settlement with Lehman over the "flip" clauses in credit-derivatives contracts, according to a
Wall Street Journal
article citing documents obtained from the U.S. Bankruptcy Court in Manhattan.
The initial dispute revolved around which institutions would be in line to take over the assets backing the derivatives once those deals were unwound. Under the settlement all disputes will be dismissed and each side will release their claims against each another, according to the report.
In addition, Lehman agreed to pay £280,320 to cover Perpetual's court costs in a separate, but identical claim, made in the United Kingdom, the article stated.
--Written by Maria Woehr in New York.
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