JPMorgan will return $800M to Lehman brokerage clients

JPMorgan will return $800M to Lehman brokerage clients
April agreement for JPMorgan Chase & Co. to return $800 million in cash and securities approved by judge
JUN 30, 2011
JPMorgan Chase & Co. will return $800 million in cash and securities belonging to customers of bankrupt Lehman Brothers Holdings Inc.'s brokerage under a settlement approved by a judge. U.S. Bankruptcy Judge James M. Peck today approved the accord, struck in April between the second-biggest U.S. bank and the trustee liquidating the remains of the brokerage, Lehman Brothers Inc. JPMorgan was the main clearing bank for the Lehman brokerage, processing billions of dollars of transactions and lending it tens of billions of dollars daily, according to court filings. While some loans were secured by securities in the brokerage's accounts, the bank didn't have a valid lien on the $800 million in customer property that is being returned, according to filings. “Customer property held by the LBI estate available for distribution will increase by more than $800 million,” the trustee, James Giddens, said in an e-mailed statement today. “This is a significant and positive result from two years of investigation and close cooperation with JPMorgan.” Consenting to return the assets in April, the bank said the settlement would have “no material financial impact,” as most of the assets had already been set aside to satisfy potential claims by the trustee. Separately, JPMorgan is seeking dismissal of an $8.6 billion lawsuit by the Lehman parent. --Bloomberg News--

Latest News

IRA assets swell to $19.2 trillion as 401(k) rollovers drive growth
IRA assets swell to $19.2 trillion as 401(k) rollovers drive growth

IRAs now hold nearly twice the assets of 401(k) plans — and most of that money didn't arrive through annual contributions.

Women feel confident about saving, but many still keep cash in low-yield accounts
Women feel confident about saving, but many still keep cash in low-yield accounts

A new survey finds that many women prioritize financial security but continue to leave savings in accounts that may not keep pace with inflation.

SEC seeks comment on prediction-market ETFs after May pause
SEC seeks comment on prediction-market ETFs after May pause

Roundhill, Bitwise and GraniteShares funds remain on hold while the agency weighs how novel ETFs should be regulated.

Dump investment banks, buy alternative asset managers, says Oppenheimer
Dump investment banks, buy alternative asset managers, says Oppenheimer

"Shares of alternative assets managers have lagged this year as investors grow wary of private-credit exposure."

TaxStatus rolls out rules-based tool to flag advice gaps
TaxStatus rolls out rules-based tool to flag advice gaps

The fintech platform is touting a new AI-free Planning Observations feature, which draws on IRS tax records to uncover opportunities for advisors.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.