Deal OK'd for Fannie to get $537M on Lehman claimJanuary 29, 2014 @ 2:53 pm
WASHINGTON (AP) - A federal bankruptcy judge has approved Lehman Brothers Holdings Inc.'s settlement with Fannie Mae, allowing the mortgage finance giant to recover about $537 million for its claim against the estate of the failed Wall Street bank over soured mortgage securities.
Judge James Peck made the ruling Wednesday. The settlement values at about $2.15 billion Fannie's claim over home loans and mortgage securities it bought from Lehman before the financial crisis. Under rules of Lehman's bankruptcy proceeding, Washington-based Fannie will receive about 25 percent of that.
Fannie and sibling Freddie Mac were rescued by the government in a $187 billion bailout in 2008 after they were hit by massive losses on high-risk mortgages.
Lehman's bankruptcy in September 2008 was the biggest in U.S. history and helped set off the financial crisis.
(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
Flight of Her Life
Julie Spencer went from her father's funeral to the state championship in the same day
Inspections reveal surprising number of cracks and movement on Seattle's viaduct
A Tacoma furniture store writes the checks for Percy Harvin's Super Bowl kick return
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.