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

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.