Other than the cost of litigating the case, Lehman Brothers announced they won't be pursuing damages from Bank of America (NYSE:BAC).
The lawsuit centered around deposits valued at about $500 million being taken from Lehman by Bank of America, which were ordered to be returned, along with $90 million in interest.
Lehman is asking for Bank of America to pay $1.3 million in lawyer fees, along with an additional $8.8 million in unrelated funds taken by the bank.
Bank of America has stated they're going to appeal the $590 million ruling of Judge James Peck.
Showing posts with label Lehman Brothers. Show all posts
Showing posts with label Lehman Brothers. Show all posts
Wednesday, January 19, 2011
Thursday, December 30, 2010
Bank of America's (NYSE:BAC) Lehman Order Amended by Judge
In an amendment of a Bank of America (NYSE:BAC) order to pay $590 million to Lehman Brothers, from U.S. Bankruptcy Judge James Peck, he said the judgement he made now isn't final.
Peck said “the judgment is hereby deemed not to be a final judgment.”
The $590 million judgement was to pay compensation for deposits taken by Bank of America.
Peck said the taking of the $500 million in deposits violated bankruptcy law. The extra $90 million was interest added to the amount.
Bank of America appealed the ruling, saying it “has established a substantial possibility of success on appeal,” citing banking law. They withdrew the appeal recently, while reserving the right to reinstate it at a later time.
Bank of America was trading at $13.29, down $0.02, or 0.15 percent, as of 2:45 PM EST.
Peck said “the judgment is hereby deemed not to be a final judgment.”
The $590 million judgement was to pay compensation for deposits taken by Bank of America.
Peck said the taking of the $500 million in deposits violated bankruptcy law. The extra $90 million was interest added to the amount.
Bank of America appealed the ruling, saying it “has established a substantial possibility of success on appeal,” citing banking law. They withdrew the appeal recently, while reserving the right to reinstate it at a later time.
Bank of America was trading at $13.29, down $0.02, or 0.15 percent, as of 2:45 PM EST.
Thursday, April 8, 2010
Citibank (NYSE:C) Reaches Agreement with Spain
Clients who lost money because of investments in Citibank (NYSE:C) will be compensated, as the bank agreed to pay about $80 million to the alleged victims.
This is in relationship to clients of Lehman, which Citibank was marketing their products to those in the country with modest savings and supposedly wasn't in their best interests to invest in.
Oddly, many of those being compensated weren't even Lehman clients, but the banks of some of the people had invested in the products, which caused losses when Lehman collapsed.
Those who agree to the deal will receive their money up till May 7.
Most of those affected by the failure of Lehman Brothers are expected to take the offer.
This is in relationship to clients of Lehman, which Citibank was marketing their products to those in the country with modest savings and supposedly wasn't in their best interests to invest in.
Oddly, many of those being compensated weren't even Lehman clients, but the banks of some of the people had invested in the products, which caused losses when Lehman collapsed.
Those who agree to the deal will receive their money up till May 7.
Most of those affected by the failure of Lehman Brothers are expected to take the offer.
Subscribe to:
Posts (Atom)