Getting your player ready...
JPMorgan Chase has agreed to pay $1.42 billion to settle allegations that it withheld critical funds from Lehman Brothers in the final days leading up to Lehman’s collapse during the financial crisis.
Lehman’s failure is considered a critical moment in the financial crisis, one that helped deepen and extend the U.S. recession.
Lehman Brothers’ bankrupt entity sued JPMorgan Chase in 2010 for $8.6 billion, alleging that JPMorgan used its position as Lehman’s clearing bank to extract virtually all of Leh man’s remaining liquid assets and establish an $8.6 billion “slush fund.” A federal judge ruled in favor of most of the allegations against JPMorgan.
The funds will be distributed to Lehman’s creditors as part of its bankruptcy proceedings.
