* More than $141 million sought
* Citigroup says Barclays obligated to cover its losses
* Barclays has no immediate comment
May 7 (Reuters) - Citigroup Inc has sued Barclays Plc to recover more than $141 million for providing foreignexchange services to a unit of Lehman Brothers Holdings Inc soonafter Lehman's bankruptcy.
The complaint filed late Monday in the U.S. District Courtin Manhattan related to Citigroup's role in the ContinuousLinked Settlement system, which was designed to ensure thatforeign exchange trades are completed.
Citigroup said it sought to stop settling trades forLehman's brokerage unit on Sept. 17, 2008, two days after Lehmanwent bankrupt, because it was incurring large losses.
But Barclays was then in the process of buying Lehman's U.S.broker-dealer business, and, according to the complaint, urgedCitigroup to keep providing the services. It also agreed toindemnify it for losses between Sept. 17-19, 2008.
Citigroup said it incurred $580 million in losses over thatperiod, but has reduced the amount to $90.8 million. The $141million it seeks includes this sum plus interest and legal fees,which Citigroup said are covered by the indemnity.
"Barclays stood to gain enormous profits from LBI'scontinued ability to settle its FX trades," Citigroup lawyerssaid. "In clear breach of the parties' agreement, Barclays hasrefused Citibank's repeated demands that it honor itsindemnity."
Barclays spokesman Brandon Ashcraft had no immediatecomment.
Lehman's bankruptcy remains the largest in U.S. history, andwas a major cause of the 2008 global financial crisis. Duringthe crisis, Citigroup obtained a series of federal bailouts,which it has repaid.
The case is Citibank NA v. Barclays Bank Plc, U.S. DistrictCourt, Southern District of New York, No. 13-03063.
Barclays (BARC)