World Economy

JPMorgan to Settle Lehman Claim

JPMorgan to Settle Lehman ClaimJPMorgan to Settle Lehman Claim

JPMorgan Chase & Co will pay $1.42 billion in cash to resolve most of a lawsuit accusing it of draining Lehman Brothers Holdings Inc of critical liquidity in the final days before that investment bank’s September 2008 collapse, Reuters reported.  The settlement was made public on Monday, and requires approval by US Bankruptcy Judge Shelley Chapman in Manhattan. It resolves the bulk of an $8.6 billion lawsuit accusing JPMorgan of exploiting its leverage as Lehman’s main “clearing” bank to siphon billions of dollars of collateral just before Lehman went bankrupt on Sept. 15, 2008, triggering a global financial crisis.