Bankruptcy Judge James Peck approved Lehman Brothers Holdings Inc.'s settlement with Fannie Mae over $18.9 billion in mortgage claims, one last major decision as Lehman's bankruptcy judge before his retirement at the end of the week, the Wall Street Journal reported today. His last major approval, over mortgage loans and mortgage-backed securities Lehman sold Fannie in the years before the financial crisis, was apropos considering the housing industry's contribution to Lehman's demise. No one objected to the settlement. Fannie Mae, which originally said that it was owed $18.9 billion, will receive a general unsecured claim of $2.15 billion against Lehman. Bankruptcy Judge Shelley C. Chapman will be taking over the Lehman case following the retirement of Judge Peck.
