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Lehman Brothers sues Daiwa over soured derivatives

Lehman is asking a bankruptcy judge for the $75m it says it was owed at the time the swaps were terminated, plus interest

Lehman's derivatives team is still wrangling with creditors over billions of dollars in disputed claims
Lehman's derivatives team is still wrangling with creditors over billions of dollars in disputed claims Photo: Getty Images

Lehman Brothers Holdings is suing Daiwa Securities Capital Markets over hundreds of soured swaps and options, claiming the Japanese investment bank shortchanged it on hundreds of derivatives contracts after Lehman’s bankruptcy to reap a multimillion-dollar windfall.

In a lawsuit filed with US Bankruptcy Court in New York, lawyers for Lehman say the bank was "in the money" to the tune of $75 million on 955 derivatives transactions - mainly interest rate and credit default swaps - with Daiwa at the time of Lehman's 2008 bankruptcy filing.

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