WASHINGTON (AP) — Lehman Brothers Holdings Inc. has reached a
settlement with Fannie Mae that would allow the mortgage finance giant
to recover about $537 million for its claim against the estate of the
failed Wall Street bank over soured mortgage securities.
The
settlement announced Thursday must be approved by a federal bankruptcy
judge. It valued Fannie’s claim over home loans and mortgage securities
it bought from Lehman before the financial crisis at about $2.15
billion. But under Lehman’s bankruptcy proceeding Fannie would get about
25 percent of that.
A Fannie official called it a fair outcome.
Fannie
and sibling Freddie Mac were rescued by the government in a $187
billion bailout after they were hit by massive losses on high-risk
mortgages.
Lehman’s bankruptcy was the biggest in U.S. history.
Copyright 2014 The Associated Press. All rights
reserved. This material may not be published, broadcast, rewritten or
redistributed.
WASHINGTON (AP) — Lehman Brothers Holdings Inc. has reached a
settlement with Fannie Mae that would allow the mortgage finance giant
to recover about $537 million for its claim against the estate of the
failed Wall Street bank over soured mortgage securities.
The
settlement announced Thursday must be approved by a federal bankruptcy
judge. It valued Fannie’s claim over home loans and mortgage securities
it bought from Lehman before the financial crisis at about $2.15
billion. But under Lehman’s bankruptcy proceeding Fannie would get about
25 percent of that.
A Fannie official called it a fair outcome.
Fannie
and sibling Freddie Mac were rescued by the government in a $187
billion bailout after they were hit by massive losses on high-risk
mortgages.
Lehman’s bankruptcy was the biggest in U.S. history.
Copyright 2014 The Associated Press. All rights
reserved. This material may not be published, broadcast, rewritten or
redistributed.