Freddie Mac wants answers from Lehman on whereabouts of past due $1.2 billion payment

By Caroline Salls

Pittsburgh, Oct. 23 - Lehman Brothers Holdings, Inc. creditor Federal Home Loan Mortgage Corp. asked the U.S. Bankruptcy Court for the Southern District of New York to order the company to hand over information related to $1.2 billion plus interest owed to Freddie Mac under two August transactions, according to a Wednesday court filing.

According to the motion, Lehman was scheduled to return on Sept. 15 a total of $1.2 billion transferred through the Federal Reserve System from Freddie Mac's account at the Federal Reserve Bank of New York to Lehman's subaccount with Citibank at the Federal Reserve bank, plus interest.

A total of $450 million was transferred to Lehman's account on Aug. 19 and $750 million was transferred on Aug. 20.

Freddie Mac said it has not received any of the required prepayment, and Freddie Mac was not listed as one of Lehman's largest unsecured creditors, despite the $1.2 billion claim.

Freddie Mac said it is entitled to conduct discovery to find out what happened to the funds.

A hearing is scheduled for Nov. 5.

New York-based Lehman Brothers Holdings is the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15. Its Chapter 11 case number is 08-13555.

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