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Lehman Jan 26
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JPMorgan To Pay $1.42 Billion Cash To Settle Most Lehman Claims
Jan 26, 2016 | Reuters
By Jonathan Stempel
JPMorgan Chase & Co (JPM.N) will pay $1.42 billion in cash to resolve most of a lawsuit accusing it of draining Lehman Brothers Holdings Inc of critical liquidity in the final days before that investment bank's September 2008 collapse. The settlement was made public on Monday, and requires approval... -
JPMorgan Reaches $1.42 Billion Deal in Lehman Clearing Case
Jan 26, 2016 | Bloomberg
By Robert Burnson
A JPMorgan Chase & Co. unit has reached an agreement to pay $1.42 billion to resolve claims it took advantage of its status as Lehman Brothers Holdings Inc.’s primary lender to unfairly extract cash and position itself ahead of other creditors in Lehman’s bankruptcy. -
J.P. Morgan To Settle Most Of Lehman Suit For $1.42 Billion
Jan 25, 2016 | The Wall Street Journal
By Patrick Fitzgerald
J.P. Morgan & Co. has agreed to pay the remnants of Lehman Brothers Holdings Inc. $1.42 billion in cash to settle much of the failed investment bank’s lawsuit that accused J.P. Morgan of illegally siphoning billions of dollars from Lehman before its collapse. -
JPMorgan Agrees To Pay $1.42B To End Most Lehman Claims
Jan 25, 2016 | Law360
By Kurt Orzeck
JPMorgan will pay $1.42 billion to settle most of Lehman Brothers Holdings Inc.’s suit accusing the bank of making wrongful transactions just before Lehman’s bankruptcy, according to a Monday filing in New York bankruptcy court. The settlement ends some claims in Lehman's suit accusing JPMorgan of contributing to its demise in 2008. -
J.P. Morgan Chase To Pay $1.42 Bln To Settle Some Lehman Brothers Claims
Jan 25, 2016 | Nasdaq
J.P. Morgan Chase & Co. ( JPM ) agreed to pay Lehman Brothers Holdings Inc.$1.42 billion in cash to settle much of the failed investment bank's lawsuit that accused J.P. Morgan of illegally siphoning billions of dollars from Lehman before its collapse. -
Unprompted, John Kasich Makes Light of His Tenure at Lehman Brothers
Jan 25, 2016 | The New York Times
By Alexander Burns
John Kasich is campaigning for president as the good-humor man, eschewing what he calls the “doom and gloom” of his rivals for the Republican nomination. The Ohio governor’s cheerful demeanor extends even to an episode of his career that opponents have used against him: Mr. Kasich’s stint at Lehman Brothers, the investment bank...
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JPMorgan To Pay $1.42 Billion Cash To Settle Most Lehman Claims
Jan 26, 2016 | Reuters
By Jonathan Stempel
JPMorgan Chase & Co (JPM.N) will pay $1.42 billion in cash to resolve most of a lawsuit accusing it of draining Lehman Brothers Holdings Inc of critical liquidity in the final days before that investment bank's September 2008 collapse.
The settlement was made public on Monday, and requires approval by U.S. Bankruptcy Judge Shelley Chapman in Manhattan.
It resolves the bulk of an $8.6 billion lawsuit accusing JPMorgan of exploiting its leverage as Lehman's main "clearing" bank to siphon billions of dollars of collateral just before Lehman went bankrupt on Sept. 15, 2008, triggering a global financial crisis.
Lehman's creditors charged that JPMorgan did not need the collateral and extracted a windfall at their expense.
Monday's settlement also resolves Lehman's challenges to JPMorgan's decision to close out thousands of derivatives trades following the bankruptcy, court papers showed.
The accord would permit a further $1.496 billion to be distributed to the creditors, including a separate $76 million deposit, court papers showed.
More than $105 billion has already been paid to Lehman's unsecured creditors, Lehman has said.
"While the Settlement Agreement is not a global resolution of all issues between the parties, it ends a significant portion of their disagreements," lawyers for Lehman and its creditors said in court papers. "The compromises set forth in the Settlement Agreement are a fair and equitable resolution."
JPMorgan declined to comment. A spokeswoman for Lehman also declined to comment.
The settlement is not expected to have a material impact on JPMorgan's earnings, a person familiar with the matter said...
For full story: http://uk.reuters.com/article/us-jpmorgan-lehman-idUKKCN0V4049
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JPMorgan Reaches $1.42 Billion Deal in Lehman Clearing Case
Jan 26, 2016 | Bloomberg
By Robert Burnson
A JPMorgan Chase & Co. unit has reached an agreement to pay $1.42 billion to resolve claims it took advantage of its status as Lehman Brothers Holdings Inc.’s primary lender to unfairly extract cash and position itself ahead of other creditors in Lehman’s bankruptcy.
Lehman Brothers said the settlement resolves two of the three major pieces of litigation with JPMorgan left over from its 2008 bankruptcy. The agreement settles Lehman’s $6.3 billion in clearing-related claims and $2.3 billion in derivatives claims, according to a filing Monday in Manhattan federal court. Lehman said in the filing that the settlement will allow it to make additional payments of $1.496 billion to creditors.
In October, a judge threw out most of Lehman’s claims to $8.6 billion taken as collateral by JPMorgan. Lehman has contended that the bank’s demands helped force it into its $613 billion bankruptcy, the largest in U.S. history.
Lawyers for Lehman and a creditors’ committee on Monday asked a federal judge in New York to approve the settlement...
For full story: http://www.bloomberg.com/news/articles/2016-01-26/jpmorgan-reaches-1-42-billion-deal-in-lehman-clearing-case
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J.P. Morgan To Settle Most Of Lehman Suit For $1.42 Billion
Jan 25, 2016 | The Wall Street Journal
By Patrick Fitzgerald
J.P. Morgan & Co. has agreed to pay the remnants of Lehman Brothers Holdings Inc. $1.42 billion in cash to settle much of the failed investment bank’s lawsuit that accused J.P. Morgan of illegally siphoning billions of dollars from Lehman before its collapse.
The settlement comes after a federal judge last fall ruled for J.P. Morgan, saying the bank didn’t abuse its leverage as Lehman’s primary clearing bank to force the investment bank to hand over more collateral in the weeks before its September 2008 collapse.
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....
For full story: http://www.wsj.com/articles/j-p-morgan-to-pay-1-42-billion-to-settle-some-lehman-claims-1453768733
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JPMorgan Agrees To Pay $1.42B To End Most Lehman Claims
Jan 25, 2016 | Law360
By Kurt Orzeck
JPMorgan will pay $1.42 billion to settle most of Lehman Brothers Holdings Inc.’s suit accusing the bank of making wrongful transactions just before Lehman’s bankruptcy, according to a Monday filing in New York bankruptcy court.
The settlement ends some claims in Lehman's suit accusing JPMorgan of contributing to its demise in 2008. Lehman’s creditors said in a motion for approval of the settlement that it would resolve a “significant portion” of the $8.6 billion suit, which accused JPMorgan Chase Bank NA of contributing to Lehman’s downfall in September 2008.
A district judge had dismissed most of the suit against JPMorgan, Lehman’s largest creditor. However, the judge preserved Lehman's allegation that JPMorgan made collateral transfers while Lehman was insolvent in violation of the Bankruptcy Code.
Monday’s motion said the deal with JPMorgan, which would provide a cash payment of $1.42 billion, would allow for almost $1.5 billion in new distributions to the creditors, including a $76 million debtor deposit.
“While the settlement agreement is not a global resolution of all issues between the parties, it ends a significant portion of their disagreements, removes the uncertainty inherent in any litigation where billions of dollars are at stake and multiple millions of fees will be spent, and enables a significant creditor distribution,” the motion said.
Lehman claimed in the suit that in the final days before it filed for bankruptcy, JPMorgan used its “life or death” leverage as Lehman’s primary clearing bank to extract desperately needed liquidity — including more than $5 billion in cash on the day before Lehman's collapse on Sept. 15, 2008 — as collateral to secure credit lines held by brokerage unit Lehman Brothers Inc.
In October last year, U.S. District Judge Richard J. Sullivan axed 43 of the 49 claims, holding that contracts between the parties allowed the bank to stop extending credit to Lehman. JPMorgan’s demands conditioning extensions of credit on obtaining additional collateral weren’t wrongful, the judge concluded.
However, Judge Sullivan preserved some claims including allegations that because Lehman was insolvent in the days leading up to its bankruptcy, the transfers were avoidable under the Bankruptcy Code. The judge said that he hadn’t found enough evidence showing that if the transactions were setoffs, they were subject to a safe harbor provision.
Lehman then requested a final judgment on the dismissed claims and asked the judge to send the rest back to bankruptcy court, arguing that the surviving claims are “core” claims which the bankruptcy court has constitutional authority to preside over.
JPMorgan in late October asked Judge Sullivan to keep presiding over Lehman Brothers' claims.
Monday’s motion said the settlement agreement would resolve the creditors’ claims in an avoidance action against JPMorgan for actual fraudulent conveyance, breach of contract, coercion and duress.
“At this point, the remaining avoidance action litigation faces a long and uncertain path,” the motion said.
It added that dismissal of the litigation would remove any prospect that JPMorgan would prevail with respect to its claims of fraudulent inducement and indemnification claims against Lehman.
However, the motion said the deal wouldn’t end additional claims over JPMorgan’s role as the main clearing bank for Lehman’s broker-dealer business and other disputes over cash distributions. Discovery is proceeding on some of those claims, the creditors said...For full story: http://www.law360.com/articles/750741/jpmorgan-agrees-to-pay-1-42b-to-end-most-lehman-claims
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J.P. Morgan Chase To Pay $1.42 Bln To Settle Some Lehman Brothers Claims
Jan 25, 2016 | Nasdaq
J.P. Morgan Chase & Co. ( JPM ) agreed to pay Lehman Brothers Holdings Inc.$1.42 billion in cash to settle much of the failed investment bank's lawsuit that accused J.P. Morgan of illegally siphoning billions of dollars from Lehman before its collapse.
The settlement comes after a federal judge last fall ruled for J.P. Morgan, saying the bank didn't abuse its leverage as Lehman's primary clearing bank to force the investment bank to hand over more collateral in the weeks before its September 2008 collapse.
The deal resolves the bulk of Lehman's $8.6 billion lawsuit against J.P. Morgan and the bank's counterclaims against Lehman.
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Unprompted, John Kasich Makes Light of His Tenure at Lehman Brothers
Jan 25, 2016 | The New York Times
By Alexander Burns
John Kasich is campaigning for president as the good-humor man, eschewing what he calls the “doom and gloom” of his rivals for the Republican nomination.
The Ohio governor’s cheerful demeanor extends even to an episode of his career that opponents have used against him: Mr. Kasich’s stint at Lehman Brothers, the investment bank that collapsed in 2008, helping to start a global financial crisis.
Mr. Kasich brought up his Lehman years, unprompted, at one of his New Hampshire events on Monday, and laughed off the attacks on his connection with the failed firm.
“I’ve been accused of bankrupting Lehman Brothers,” he joked, to laughter from the crowd at the Manchester Rotary Club. “I actually operated a two-man office in Columbus, Ohio. If I can bankrupt Lehman Brothers from there, I ought to be pope.”
Mr. Kasich has made the joke before. An adviser on the sidelines of his event said it has become a regular feature of his speeches. But Mr. Kasich’s tenure at the bank may become newly relevant in the campaign if he continues his climb into the top tier of candidates in New Hampshire. Donald J. Trump has already mocked Mr. Kasich for his past affiliation with Lehman, criticizing him in a fall debate for holding a senior position at the bank “when it went down the tubes.”...
For full story: http://www.nytimes.com/politics/first-draft/2016/01/25/unprompted-john-kasich-makes-light-of-his-tenure-at-lehman-brothers/
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