JPMorgan Slammed Over Use Of $700M Lehman Collateral

Law360, New York (October 26, 2011, 9:42 PM EDT) -- Lehman Brothers Holdings Inc. and its creditors committee on Wednesday objected to JPMorgan Chase Bank NA's use of $700 million in collateral from Lehman's bankruptcy proceedings for customer claims, arguing that such use violates a 2008 agreement related to $8.6 billion in collateral.

Lehman and its creditors told a New York federal bankruptcy court that the 2008 agreement — which it said was "forced" upon it — allows JPMorgan to apply the $8.6 billion in collateral to its affiliates, subsidiaries and successors, but that customers do...
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