JPMorgan pays $1.42B to settle Lehman claims
Ends a 'significant portion' of their disputes
Wrapping up most of its issues with the company, JPMorgan Chase announced late Monday night that it has agreed to pay the remnants of Lehman Brothers Holdings Inc. $1.42 billion in cash, according to an article in The Wall Street Journal.
The article said that the agreement settles most of the failed investment bank’s lawsuit over claims that JPMorgan illegally siphoned billions of dollars from Lehman before its collapse.
From The Wall Street Journal:
The deal, unveiled Monday night in a filing in U.S. Bankruptcy Court in New York, resolves the bulk of Lehman’s $8.6 billion lawsuit against J.P. Morgan and the bank’s counterclaims against Lehman. It also puts to rest Lehman’s challenges over J.P. Morgan’s closeout of thousands of derivatives contracts following the investment bank’s collapse.
Although the settlement doesn’t resolve all the claims between Lehman and J.P. Morgan, it ends a “significant portion” of their disputes, court papers said, and allows the post bankruptcy Lehman estate to make another $1.5 billion distribution to the investment bank’s creditors.
JPMorgan Chase will also pay $995 million to bond insurer Ambac Financial Group to settle insurance disputes related to residential mortgage-backed securities, according to an article in Reuters.