FRANKFURT, Dec 12 (Reuters) - German state bank KfW [KFW.UL] will get back around two-thirds of the 320 million euros ($471.3 million) it transferred to Lehman Brothers on the day the Wall Street bank went bust, a source close to the matter said.
Mocked by German media when the incident emerged a year ago, KfW mistakenly sent the money in September 2008 despite news Lehman LEHMQ.PK had collapsed.
After tough negotiations with Lehman’s administrators, KfW will wind up with millions that the German government owed the U.S. bank, reducing KfW’s loss to around 100 million euros, the source said, confirming a report by Der Spiegel magazine.
A KfW spokesman would confirm on Saturday only that a “settlement favourable for everyone involved” had been reached.
Two KfW executives forced out over the payment are contesting their dismissal in court. (Reporting by Alexander Huebner; Writing by Michael Shields; Editing by Victoria Main)