Citadel Says Lehman Owes It $470 Million From Derivatives

Aug 26 2009 | 12:58pm ET

Citadel Investment Group has filed a claim against Lehman Brothers Holdings, arguing that the collapsed investment bank owes as much as $470.5 million.

The Chicago-based alternative investments giant made its move in U.S. Bankruptcy Court in New York last month, ahead of an Oct. 22 deadline for parties to submit proof of claims against Lehman. According to Citadel, its Citadel Equity Fund had derivative contracts with Lehman when it collapsed. The firm is seeking the value of the derivatives contracts, off-set by the collateral held when the bank collapsed, as well as the cost to replace the trades.

In its filing, Citadel said its claim was partly based on guarantees, although it did not elaborate.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of