A case with its roots in the 2008 financial crisis came to a close on Wednesday as Credit Suisse confirmed it will receive $385 million from Lehman Brothers Holdings. The Swiss bank had initially sought over a billion dollars in compensation for terminated derivatives transactions.

Lehman Brothers became one of the faces of the financial crisis after it filed for Bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term in September of 2008. The investment bank’s failure meant that several companies have had to make claims against it regarding terminated derivatives contracts. Aside from Credit Suisse, the firm has already had to settle accounts with JP Morgan and Citibank.

Inflating their losses?

Credit Suisse claimed that it was owed $1.2 billion in compensation for terminated derivatives contracts, but Lehman Brothers argued that this was not the case. The investment bank claimed that Credit Suisse was inflating the value of its losses to take money from its creditors.

Yesterday’s announcement may have illustrated that was indeed the case. As noted, the Swiss bank will receive $385 million, a fraction of the amount it was initially asking for.

More frustratingly for Credit Suisse, the case will mean its strategic resolution unit will take a $70 million hit this year. The firm did not seem overwhelmingly concerned by this as it released a statement saying this loss “will not have a material impact to the bank.”

Credit Suisse will not receive the money awarded to them immediately either. The Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term was reached between the two parties and not via the courts. As such, the Swiss bank will have to wait for the US justice system to approve the agreement before they can receive the cash.