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Bank of America v. Lehman Bros. Holdings Inc. (In re Lehman Bros. Holdings Inc.)

Bank of America v. Lehman Bros. Holdings Inc. (In re Lehman Bros. Holdings Inc.)

Ruling
Setoff by bank of funds in debtor's overdraft security account against unrelated debts violated stay.
Procedural posture

Plaintiff clearing bank brought an adversary proceeding against defendant bankruptcy debtor, a large securities broker, seeking a declaration that the bank properly set off funds in a security account for overdrafts against unrelated debts of the debtor, or that retroactive relief from the automatic bankruptcy stay was warranted. The bank and the debtor cross-moved for summary judgment.

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Commercial opinion summary, case decided on November 16, 2010 , LexisNexis #1210-054