Bank Leumi to sue Lehman Brothers - Israel Business, Ynetnews

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Leumi CEO Galia Maor Photo: Ben Lam
Leumi CEO Galia Maor Photo: Ben Lam

Bank Leumi to sue Lehman Brothers

Bank claims fallen American holdings company failed to implement sale order given just days prior to its filing for bankruptcy

Lital Dobrovitzky
Published: 09.18.08, 18:05 / Israel Business

Bank Leumi filed a NIS 370 million ($105 million) damages suit against fallen American holdings giant Lehman Brothers, Thursday, with the Tel Aviv District Court.


Lehman Brothers filed for Chapter-11 on Monday, sending Wall Street into a financial spiral.


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Leumi claims that last Friday, it ordered Lehman Brothers to sell stocks it was invested in, but the order was not carries out in full, and the fund which were supposed to be derived from it were never wired to it in full.


The bank asked the court to seize several of Lehman Brothers assets in Israel, to secure restitution of the funds.


Leumi's exposure to Lehman Brothers' portfolio amounts to $88 million. The bank has recently liquidated some $100 million in Lehman's financial instruments, but has yet to receive the funds.


Tel Aviv District Court granted the banks motion and ordered the assets be seized.


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