Barclays Plc is entitled to about $6 billion of disputed assets as part of its hurried purchase of much of Lehman Brothers Holdings Inc's brokerage unit at the height of the 2008 financial crisis, a federal appeals court ruled. Tuesday's decision by the 2nd U.S. Circuit Court of Appeals in New York is a setback for the brokerage's creditors, including Lehman affiliates and hedge funds, for whom the trustee James Giddens has been seeking to recoup money. Lehman had been Wall Street's fourth-largest investment bank. It had $639 billion of assets when it filed for Chapter 11 protection on Sept. 15, 2008, making its bankruptcy by far the most in U.S. history. Barclays won court approval to buy much of Lehman's brokerage business at a Sept. 19, 2008 hearing overseen by U.S. Bankruptcy Judge James Peck in Manhattan. A dispute remained, however, over how to dispose of various "cash" assets of the brokerage. These included about $4 billion of margin assets held by third parties to support
↧