Citigroup to settle dispute with Lehman Brothers for $1.74 bn

Updated - January 10, 2018 at 10:55 PM.

The dispute arose because Citigroup said it was owed $2 bn as a result of Lehman's bankruptcy, while latter argued that the money should go to its creditors

A view of a Citibank sign on a bank branch in midtown Manhattan, New York in this November 17, 2010 file photo. Citigroup Inc said it agreed to pay $7 billion to settle a U.S. government investigation into mortgage-backed securities the bank sold in the run-up to the 2008 financial crisis. To match story CITIGROUP-SETTLEMENT/DOJ REUTERS/Mike Segar/Files (UNITED STATES - Tags: BUSINESS LOGO CRIME LAW)

Citigroup Inc and Lehman Brothers Holdings Inc resolved a fight over $2.1 billion that dates to the financial crisis era after Citigroup agreed to give back $1.74 billion to the estate of the investment bank, according to Bloomberg .

Citigroup had kept about $2.1 billion that Lehman had on deposit with it for trades following the Lehman bankruptcy, Bloomberg said.

The dispute arose because Citigroup said it was owed $2 billion as a result of Lehman's bankruptcy, while Lehman argued that the money should go to its creditors,

Bloomberg said.

Lehman Brothers Managing Director Steven Mullaney said in court papers that the pact was “reasonable in light of the complexities of the litigation,” according to Bloomberg .

Reuters was not able to get a comment from Citigroup or Lehman Brothers outside business hours.

Published on September 30, 2017 06:05