Citigroup is big trustee to Lehman debt

September 16th, 2008 - 6:14 pm ICT by IANS  

Lehman BrothersNew York, Sep 16 (IANS) Citigroup and Bank of New York Mellon are trustees to $138 billion of Lehman Brothers’ bonds, the biggest on the list of unsecured creditors, according to a petition filed in a New York bankruptcy court Monday.Banks are now trying to calm employees and clients in the wake of Lehman’s bankruptcy filing Monday, Forbes magazine reported on its website.

Citi, which is also reeling from exposure to mortgage securities and rising loan losses, said in a memorandum Monday by chief executive officer Vikram Pandit that the firm had strong liquidity and capital positions.

He also wanted to motivate his people to focus on business.

“It is important that we maintain our unrelenting focus on the needs and concerns of our clients and shareholders,” Pandit said in the memo.

“We are confident about the future despite a very challenging time,” he said.

Citi also had a $275 million bank line out to Lehman, according to the bankruptcy filing.

Bank of New York Mellon is exposed to $17 billion of bond debt.

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