Big bonus battle plays out.
Reuters reports that a former star Lehman Brothers trader can try to recoup only about $7.7 million of an $83 million bonus he claimed to be owed after the investment bank collapsed in 2008, a federal appeals court ruled on Thursday.
The 2nd U.S. Circuit Court of Appeals in Manhattan upheld rulings by two lower court judges that Jonathan Hoffman was not entitled to the entire bonus for 2007 and 2008, on top of another $83 million he was paid by Barclays, which bought much of Lehman's North American banking business.
One of the judges, U.S. District Judge Lorna Schofield, had ruled last July that while the former Lehman managing director had been "extremely successful" trading interest rate products, "he negotiated for and received everything he was owed," and receiving the full bonus would be a "windfall."
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