Citi could face up to $3 billion in Lehman claims

By @ibtimes on

Citigroup Inc could face up to $3 billion in claims from the bankruptcy proceedings of Lehman Brothers Holdings Inc , the third largest U.S. bank by assets said in a regulatory filing on Friday.

The trustee for Lehman under the Securities Investor Protection Act may seek to recover $1 billion that Citigroup took for clearing obligations for Lehman's broker-dealer subsidiary, the bank said in its annual report.

Lehman could also try to recover a $2 billion deposit it made with Citigroup in June 2008, before its collapse, the filing said.

Citigroup said it believes it has the right to counter the deposit with claims it has against Lehman relating to derivatives contracts and loan documents.

(Reporting by Maria Aspan; Editing by Bernard Orr)

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