Freddie Mac seeks Lehman probe of missing $1.2 bln

NEW YORK (Reuters) - Mortgage finance company Freddie Mac (FRE.N) has asked a U.S. bankruptcy judge for the ability to conduct an investigation into $1.2 billion it claims it is owed by bankrupt investment bank Lehman Brothers Holdings Inc (LEHMQ.PK).

Freddie Mac, which was bailed out by the U.S. government last month, said it is missing $1.2 billion from two fund transactions conducted in August, according to court documents.

It said the money was due to be repaid to Freddie Mac on September 15, the day Lehman filed for bankruptcy protection in the largest U.S. bankruptcy filing in history.

Freddie Mac is seeking the return of the $1.2 billion plus interest.

The mortgage finance company joined several other creditors that are also asking the court for approval to search various Lehman documents and conduct depositions of former and current Lehman employees in efforts to recover debts.

The bankruptcy court is expected to hear arguments on whether such investigations should be allowed on November 5.

Lawyers for Lehman have argued previously that such requests should be delayed as they are still trying to sort through the chaos that was created when Lehman filed for Chapter 11.

(Reporting by Emily Chasan; Editing by Bernard Orr)