Lehman Brothers on track to pay former securities customers in full
Lehman Brothers Inc. is on track to pay back former securities customers in full after nearly five years in liquidation.
James Giddens, trustee for the liquidation of Lehman Brothers under the Securities Investor Protection Act, announced that new payments starting Friday will return 100% of their money to all brokerage customers.
"Distributions from the LBI estate will stand as the largest return of property in history to former customers of a broker-dealer following a bankruptcy and liquidation proceeding," he said in a statement.
In the weeks immediately after Lehman's bankruptcy, 110,000 customers were made whole with more than $92 billion in distributions.
When current distributions to affiliate, institutional, hedge fund and other customers are completed, more than $100 billion will be distributed to customers.
"The system to protect customer property worked, and that is good news for the former Lehman customers caught up in the bankruptcy who will now get all their property back," Giddens said.
He concluded, "We are grateful to the Securities Investor Protection Corporation and the Securities and Exchange Commission for their assistance, and to Judge James Peck for his continued oversight. As we finish additional customer distributions, we remain focused on maximizing assets for the general estate and clearing the way for distributions to general creditors."