JP Morgan Chase will pay $798m to settle all of the remaining lawsuits brought against it by Lehman Brothers Holding, subject to approval by the US Bankruptcy Court in New York. The settlement will cover the claim that JP Morgan improperly handled securities collateral for Lehman’s tri-party repurchase agreements (repos), as well as Lehman’s issue with JP Morgan Chase’s securities lending claims. In a statement, JPMorgan, which is still reeling from its own financial crisis and has been under pressure since then to clean up its act, said it was “pleased to have reached an agreement on this
JP Morgan Chase will pay $798m to settle all of the remaining lawsuits brought against it by Lehman Brothers Holding, subject to approval by the US Bankruptcy Court in New York. The settlement will cover the claim that JP Morgan improperly handled securities collateral for Lehman’s tri-party repurchase agreements (repos), as well as Lehman’s issue with JP Morgan Chase’s securities lending claims. The settlement is in addition to the $1.42bn that JP Morgan will pay to Lehman Brothers to settle the majority of a 2010 lawsuit claim that JP Morgan Chase took collateral before Lehman claimed bankruptcy.