Lehman Brothers Holdings has reached an agreement with Bank of America Corp. (BofA) and Merrill Lynch & Co. to lower their derivatives claims against the bankrupt bank, The Wall Street Journal reports. As part of the deal, the two banks will reduce their claims by more than $4 billion.
BofA will also not pursue its appeal on a $500 million judgment against it and return $356 million to Lehman. The two banks have also committed to support Lehman’s $65 billion bankruptcy exit plan, adds Reuters.
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