JPMorgan To Pay $20M For Alleged Misuse Of Lehman Funds

Law360, New York (April 4, 2012, 1:22 PM EDT) -- JPMorgan Chase Bank NA agreed Wednesday to pay $20 million to settle a U.S. Commodity Futures Trading Commission suit claiming it mishandled Lehman Brothers Inc.’s customer funds during the investment firm’s historic collapse.

The CFTC simultaneously filed and resolved an enforcement action over the bank’s initial refusal to release more than $333 million in Lehman customer money it held at the time of the firm's September 2008 bankruptcy, the largest in U.S. history. JPMorgan acted as if the funds belonged to Lehman as opposed to its...
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