Almost a decade after the global financial crisis, the fate of another $2 billion from the wreckage of Lehman Brothers Holdings Inc. is about to be determined, Bloomberg reported on Friday. The failed investment bank is seeking to recoup the cash from Citigroup Inc. Lehman alleges Citigroup created “phantom transaction costs” in order to justify a bankruptcy claim that would allow it to keep $2 billion in cash Lehman had deposited on the trades. Citigroup contends it did nothing wrong and used reasonable practices. The trial opens a rare window into the frenzied weekend before Lehman’s bankruptcy filing on Sept. 15, 2008. Lehman, which first sued over the $2 billion in 2012, claims that Citigroup efficiently hedged its risks, but went on to inflate its claim by marking its books to its benefit. The adversary suit is Lehman Brothers Holdings Inc., et al. v. Citibank NA, 12-01044, U.S. Bankruptcy Court, Southern District of New York.
