CIBC settles

Toronto-based Canadian Imperial Bank of Commerce (CIBC) reached a settlement agreement with the Lehman Estate (the brokerage estate of New York-based Lehman Brothers Holding Inc.) in December 2012. As part of the settlement, CIBC must pay US$149.5 million (US$110.3 million after taxes) to the estate. After Lehman Brothers’ bankruptcy filing in September 2008, CIBC recognized a gain of US$841 million as a result of an unfunded commitment on a variable funding note (VFN) issued by a collateral debt obligation. As a result, in September 2010, the Lehman Estate sued CIBC, as well as other financial services institutions, claiming that CIBC had to fund the VFN.

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