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Long Beach Receives Additional Recovery
From Lehman Brothers Bankruptcy Case
By Tiffany L. Rider - Assistant Editor
October 11, 2013 – The City of Long Beach has recovered additional dollars from a deal with the Lehman Brothers Holdings, Inc., the now-defunct firm that was one of the first to fall in the Wall Street meltdown of 2008.
According to Long Beach City Attorney Charles Parkin, the city received $1.4 million on October 3 toward recovery of its initial $20 million investment with the firm. The initial investment was made September 3, 2008 as a short-term commercial paper. “The rating agencies were saying, ‘This is a perfectly safe government investment,’” Parkin said, and then Lehman Brothers fell into bankruptcy 12 days later.
The city has recovered $4.6 million to date. Parkin said there has been concern about how much time and money has been spent by the city to recover as much as possible from the investment. The Long Beach City Council meets at 4:30 p.m. on October 15 in closed session to discuss the matter, among other existing litigation cases.
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