Lehman Brothers to sue JPMorgan Chase
Insolvent bank Lehman Brothers pursue JPMorgan Chase for $8.6bn
Collapsed bank Lehman Brothers has filed a lawsuit against its former
short-term lender, JPMorgan Chase, alleging the lender contributed to its
failure.
Lehman Brothers, which filed for administration at the end of 2008, is
seeking $8.6bn (£5.93bn) from JPMorgan. The bank claims JPMorgan seized the
money as collateral in the days leading up to its collapse the
Financial
Times reported.
Lehman Brothers filed the lawsuit in Manhattan New York this week said
JPMorgan used its “unparalleled access” to demand the cash four days before
Lehman’s collapsed.
“With this financial gun to Lehman’s head, JP Morgan was able to extract
extraordinarily one-sided agreements from Lehman literally overnight,” the bank
said in the complaint.
“Those billions of dollars in collateral rightfully belong to the Lehman
estate and its creditors.”
JPMorgan has called the lawsuit “ill-conceived”.
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