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The Securities Investor Protection Corp. (SIPC) announced that about $38 billion in claims relating to the Lehman Brothers Inc. (LBI) liquidation proceeding will be resolved and the way paved for a 100% return of customer property if the agreement in principle is reached Friday by James W. Giddens, trustee for the liquidation of LBI under the Securities Investor Protection Act (SIPA), and Tony Lomas, the Joint Administrator of Lehman Brothers International (Europe) (LBIE) is approved by the Court.
SIPC said it applauded the hard work of Trustee Giddens and his attorneys in reaching this “major milestone.”
“With the return of all LBI customer property, no advances from the SIPC Fund will be necessary to make LBI customers whole,” according to SIPC.
Full details on the agreement in principle can be found at www.lehmantrustee.com.
“This agreement is a significant achievement that will benefit customers in several ways,” said SIPC President Stephen Harbeck, in a statement. “Not only will it allow for 100% of customer property to be returned, it will allow for the return of securities and cash to customers and creditors in a much more expeditious fashion than if ongoing litigation had continued.”
Harbeck went on to say that “SIPC’s goal is always to achieve the maximum recovery for customers and Trustee Giddens’s efforts have yielded the best possible results. SIPC looks forward to continuing to work with the Trustee to finalize this agreement and to its approval by the Court so the distribution of funds to customers can commence.”