Lehman Sues St. Louis University
Bloomberg reported that Lehman filed suit against Saint Louis University, the counter party on five interest-rate swaps at the start of Lehman’s bankruptcy in 2008. According to Lehman, the university terminated the swaps early and paid Lehman about $25 million, the report said.
Bloomberg said Lehman contends the university calculated the termination payment in a commercially unreasonable manner and wants $17.5 million more.
According to the report, Lehman claims the bids SLU received were below market because the university made it clear the dealers wouldn’t be required to enter into actual swap agreements.
To read the entire Bloomberg story, target=”_blank”>click here.
Previously on abfjournal: Bloomberg: Lehman Haunts Banks Even After Shares Triple, September 16, 2013