» Banks: JP Morgan Chase paid $ 1.42 billion to settle litigation related to Lehman Brothers
Banks: JP Morgan Chase paid $ 1.42 billion to settle litigation related to Lehman Brothers
JP Morgan Chase bank agreed to pay $ 1.42 billion to settle litigation related to the bankruptcy of Lehman Brothers in 2008, according to a court document seen Tuesday.
The first US bank whose branches were creditors of Lehman Brothers, was accused of having overstepped its rights to be reimbursed as quickly as possible before the bankruptcy of the famous New York institution that has destabilized the global financial system.
Of funds from JPMorgan had indeed provided loans to Lehman Brothers through complex financial products and demanded to recover their priority setting, while worsened the financial situation of the bank. In doing so, they had passed before other creditors and had contributed to the acceleration of bankruptcy.
"This agreement resolves litigation against two of the main (JPMorgan) ... in exchange for a cash payment of $ 1.42 billion and Lehman Brothers agreed to withdraw the complaints," it is specified in the text.
After this agreement, the administrators of Lehman Brothers announced that they would donate some 1.496 billion dollars in addition to other creditors of the bank.
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