Lehman Brothers Holdings Inc. is suing Raymond James Financial Inc. to recover more than $2 million it says it is owed related to an old swap agreement, the Wall Street Journal reported on Saturday. The lawsuit is part of an effort by the failed investment bank to recover funds lost when firms on the other end of complicated swap agreements terminated them in the wake of Lehman's September 2008 collapse. Lehman Brothers says that Raymond James took over Iowa Telecom's swap position in late 2008 and "took charge of the process…in order to gain a much larger financial advantage that would leave Iowa Telecom unaffected — but would directly deprive Lehman of the value of the terminated interest rate swap." Lehman Brothers says that ultimately, through a series of actions, the amount that Iowa Telecom should have paid it was instead paid to Raymond James. The lawsuit seeks to recover that amount, which is roughly $1.9 million plus interest and fees.
