Mortgage Co. Holding Collateral Hostage: JPMorgan

Law360, New York (September 11, 2008, 12:00 AM EDT) -- JPMorgan Chase & Co. has asked a U.S. judge for permission to reclaim from bankrupt American Home Mortgage Inc. its JPMC warehouse loans, which the bank claims are being used as bargaining chips while their value plummets.

On Wednesday, JPMorgan submitted in the U.S. Bankruptcy Court for the District of Delaware a motion for relief from automatic stay, arguing that AHM has no equity in the loans, and that they aren't necessary for the bankrupt lender's Chapter 11 liquidation plan.

The bank is one of AHM's...
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