Lehman Brothers Financial SA (LEHNQ)

[cottonisking]

"Lehman and its creditors argued that the 2008 agreement — which it said was "forced" upon it — allowed JPMorgan to apply the $8.6 billion in collateral to its affiliates, subsidiaries and successors, but that customers do not qualify as any of those.
"

http://www.law360.com/articles/305329/jpmorgan-to-return-700m-to-lehman-in-settlement


*** Old Post

1) JPMCB "controlled" LBHI
2) LBHI was "controlled by" JPMCB
3) LBHI and JPMCB are codebtors (see docket 46304) "under common control with" in LBHI's chapter 11 case(s)

*****

"The largest single drain on Lehman’s liquidity came ultimately from JPMorgan itself. In the week prior to Lehman’s bankruptcy, JPMorgan used the explicit threat of ceasing to clear Lehman’s tri-party repo to extract $8.6 billion in cash from Lehman. This left Lehman’s European broker-dealer with a projected cash shortfall of $4.5 billion, forcing Lehman to file for bankruptcy in the early morning hours of Sept. 15, 2008."


https://www.quinnemanuel.com/the-firm/publications/article-december-2018-what-we-learned-as-lehman-s-bankruptcy-litigators/

*****

1)

"ORDERED that LBHI's Capital Trust Preferred Securities are parity with LBHI's Capital Trust Preferred Securities held by JPMCB or JPMCB's affiliates per LBHI's relevant prospectuses and with or without a securities holder's, prior to purchase, knowledge of and reliance on LBHI’s August and September 2008 guaranties and security agreements in favor of JPMCB’s subsidiaries and affiliates."

*****

See docket 46304 from 2014 for JPMCB's Cts issues as it relates to the CTs' back interest payment which is $1.2 Billion.

*****

"GUARANTEE AGREEMENT


This GUARANTEE AGREEMENT (the "Guarantee"), dated as of March
17, 2003, is executed and delivered by Lehman Brothers Holdings Inc.,
a Delaware corporation (the "Guarantor"), and JPMorgan Chase Bank, as
trustee (the "Guarantee Trustee"), for the benefit of the Holders (as
defined herein) from time to time of the Securities (as defined
herein) of Lehman Brothers Holdings Capital Trust III, a Delaware
statutory trust (the "Trust"). "
.
.
.

" (g) the following terms have the following meanings:

"Affiliate" has the same meaning as given to that term in Rule
405 of the Securities Act of 1933, as amended, or any successor rule
thereunder."





https://www.sec.gov/Archives/edgar/data/806085/000104746903008869/a2105775zex-4_05.htm



*********

"17 CFR § 230.405 - Definitions of terms.
CFR Table of Popular Names prev | next
§ 230.405 Definitions of terms.
Unless the context otherwise requires, all terms used in §§ 230.400 to
230.494, inclusive, or in the forms for registration have the same
meanings as in the Act and in the general rules and regulations. In
addition, the following definitions apply, unless the context
otherwise requires:

Affiliate. An affiliate of, or person affiliated with, a specified
person, is a person that directly, or indirectly through one or more
intermediaries, controls or is controlled by, or is under common
control with, the person specified."

https://www.law.cornell.edu/cfr/text/17/230.405