Israeli Banks’ Leumi and Discount Reach Deal Lehman Assets
Written by: Aaron Katsman | April 12, 2009
In a deal reached regarding seized Lehman Brothers assets, Bank Discount will get first dibs on those assets.
According to Globes: “The two banks agreed that Discount Bank will receive first priority and only afterwards will Bank Leumi receive funds. The compromise has the status of a judicial ruling according to the reports of Bank Discount. Sources in the banking system estimate that there are more than NIS 600 million of Lehman Bros. in Discount Bank., the same amount written off by the two Israeli banks in debts from the US investment bank. Therefore, if the legal process is realized vis-à-vis Lehman Bros. trustee, the two Israeli banks should fully realize their losses. The trustee of Lehman Bros. assets is the London accounting firm PWC and estimates are that the receivership process will take years.”
Good news for shareholders of both banks.
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