Citadel’s big Lehman loss

August 24, 2009

It’s long been suspected that Ken Griffin’s Citadel Investment Group took a big blow when Lehman Brothers went bust nearly a year ago. But Griffin and his management team have been reluctant to put a number on the damage to the Chicago-based fund.

That is, until now.

In a brief, one-page filing, Citadel claims it is owed some $470 million on a derivatives contract. The $12 billion hedge fund conglomerate offers no details about the derivatives deal in the proof of claim, submitted as part of the Lehman bankruptcy filing.

To date, Citadel’s claim is the third largest submitted by a creditor in the bankruptcy.

As the one-year anniversary of Lehman’s collapse approaches, expect more hedge funds and banks to fess-up about their Lehman losses.

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Let them deduct it from their taxes at $3,000.oo a year like the rest of us.

Posted by ROYB | Report as abusive

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