JPMorgan to pay $800M to settle Lehman brokerage claims

JPMorgan to pay $800M to settle Lehman brokerage claims
JPMorgan Chase & Co. will settle claims against it brought by Lehman Brothers Holdings Inc.'s brokerage by returning $800 million in cash and securities, according to court papers.
JUN 23, 2011
JPMorgan Chase & Co. will settle claims against it brought by Lehman Brothers Holdings Inc.'s brokerage by returning $800 million in cash and securities, according to court papers. The defunct brokerage, Lehman Brothers Inc., will distribute the money to customers, according to a filing yesterday in U.S. Bankruptcy Court in Manhattan. JPMorgan was the main clearing bank for the Lehman brokerage, processing billions of dollars of transactions and lending tens of billions of dollars daily to LBI, according to the filing. While some of the loans were secured by securities in the brokerage's accounts, the bank didn't have a valid lien on some customer property, which now is being returned, it said. “The agreement will have no material financial impact on JPMorgan,” the bank said in an e-mailed statement. Most of the assets were set aside to await a resolution of claims by the trustee who is liquidating the remnants of Lehman's brokerage, it said. Separately, JPMorgan, the second-biggest U.S. bank, is trying to get an $8.6 billion lawsuit by the Lehman parent dismissed. --Bloomberg News--

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave