Investment bank agrees Enron settlement
JP Morgan Chase has settled a lawsuit with insurers over energy contract guarantees with Enron, which went bankrupt over a year ago.
Link: Andersen and Enron
The group, the world’s second biggest investment bank, had launched a $1bn (£600m) lawsuit against ten insurers after the collapse of Enron voided it future energy trading contracts between Mahonia, an offshore unit of JP Morgan and the former energy giant.
In its action against the insurers, JP Morgan claimed the collapse of Enron had left thousands of its staff jobless and pensionless
According to a report on the BBC, the insurers have agreed to pay up to 60% of the amount, reaching agreement with the investment bank, just before the jury retired to consider its verdict.
JP Morgan stock holders have welcomed the settlement, saying it will remove the uncertainty brought about the lawsuit.