Sunday, 1 February 2015
Last updated 2 days ago
Feb 20 2014 | 9:15am ET
Lehman Brothers' settlement with Freddie Mac is good news for the bankrupt bank's hedge-fund creditors.
A federal judge yesterday approved a $767 million payout to Freddie Mac. That is much less than the bank was forced to set aside two years ago, giving the Lehman estate more money to distribute to other creditors.
Former U.S. Bankruptcy Judge James Peck had ordered Lehman to keep $5 billion aside to pay Fannie Mae and Freddie Mac. But the combined payout to the two government-backed mortgage giants is just over $1.3 billion.
In addition, Fannie and Freddie will turn over information that will allow Lehman to sue mortgage originators, potentially increasing the pot for creditors even further. Currently, Lehman has almost $13 billion to pay unresolved claims.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…