The trustee unwinding Lehman Brothers Inc. has reached a deal with the failed investment bank's German affiliate to cut more than a billion dollars in claims by more than half, the Wall Street Journal reported today. In a court filing yesterday, Lehman brokerage trustee James W. Giddens said that German affiliate Lehman Brothers Bankhaus AG can assert a claim of $600 million against the trustee, down from the $1.35 billion Bankhaus originally wanted. Earlier this month, the trustee reached a deal with Citigroup Inc. that ends a long-running legal fight over more than $1 billion Lehman deposited at the bank to cover foreign exchange trades the same week it filed for bankruptcy.
