AI
Thursday, February 25, 2010 5:17:21 PM
LEHJQ .11, news, charts
Lehman Brothers and JP Morgan Chase (NYSE: JPM) Reach Settlement on Bankruptcy Case
February 25th, 2010
Lehman Brothers and JP Morgan Chase (NYSE: JPM) Reach Settlement on Bankruptcy Case
Lehman Brothers Holdings Inc (OTC:LEHMQ) will pay JP Morgan Chase & Co (NYSE: JPM) $557 million in cash and allow the bank to keep $7.7 billion in collateral to settle many of the bank’s claims in Lehman Brothers bankruptcy case.
JP Morgan, which is currently the second largest bank in the United States in terms of assets, will transfer some illiquid securities back to Lehman that have a face value of about $9 billion which it is holding as collateral, according to a new court filing made in New York yesterday.
The settlement between the two companies is subject to approval from the court. Lehman Brothers, which filed the largest bankruptcy in United States history back in 2008, said that the filing is not certain about the actual market value of the securities that are being returned.
Lerhman spokeswoman Kimberly Macleod said in a statement that “The settlement allows Lehman to more efficiently manage billions of dollars worth of its illiquid assets thereby maximizing the return on those assets for the benefit of its creditors,”
She continued, “The parties to the settlement have reserved all rights with respect to claims they have against each other.”
http://www.americanbankingnews.com/2010/02/25/lehman-brothers-otclehmq-and-jp-morgan-chase-nyse-jpm-reach-settlement-on-bankruptcy-case/
*******
IMO ... With the JPM settlement one would assume the $29 billion claim against Lehman has been removed. This is a major PLUS for the LEHMAN Balance Sheet -- an adjustment of $ 29 Billion off the liability side.
*******
Lehman, JPMorgan Reach Deal on Billions in Claims (Update2)
http://www.businessweek.com/news/2010-02-25/lehman-jpmorgan-reach-deal-on-billions-in-claims-update2-.html
Feb. 25 (Bloomberg) -- Lehman Brothers Holdings Inc. will pay JPMorgan Chase & Co. $557 million in cash and let it keep $7.7 billion in collateral in a deal to settle some of the bank’s claims in Lehman’s bankruptcy case.
JPMorgan, the second-largest U.S. bank by assets, will transfer back to Lehman “illiquid securities” with a face value of $9 billion that it is also holding as collateral, according to a court filing yesterday in New York.
The settlement is subject to court approval. Lehman, which filed the biggest bankruptcy in U.S. history in 2008, said in the filing it isn’t sure of the actual market value of the securities being returned.
“The settlement allows Lehman to more efficiently manage billions of dollars worth of its illiquid assets thereby maximizing the return on those assets for the benefit of its creditors,” Lehman spokeswoman Kimberly Macleod said in an e- mailed statement. “The parties to the settlement have reserved all rights with respect to claims they have against each other.”
David Wells, a JPMorgan spokesman in London, declined to comment.
Under Seal
Lehman’s brokerage used JPMorgan as its primary clearing bank and deposited billions in collateral, including the illiquid securities, with the New York-based bank. An examiner probing Lehman’s failure has said he aims to make public a report filed under seal on whether banks such as JPMorgan may have contributed to the insolvency of the fourth-largest investment bank.
JPMorgan in the summer of 2008 began requiring billions of dollars of collateral from Lehman to guarantee its borrowings, according to the filing. In addition to the illiquid securities, the bank took cash and money market funds valued at $8.57 billion from Sept. 9 to 12, Lehman said.
After Lehman’s Sept. 15, 2008 bankruptcy, JPMorgan filed proofs of claim of more than $29 billion, reducing the amount over time by using collateral previously deposited by Lehman, according to the filing. The remaining balance will be paid by the current deal, Lehman said.
The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
--Editors: Peter Chapman, Mary Romano.
To contact the reporter on this story: Linda Sandler in New York at +1-212-617-2398 or lsandler@bloomberg.net.
To contact the editor responsible for this story: Anthony Aarons at +44-20-7673-2227 or aaarons@bloomberg.net.
*******
Lehman Holdings Family All Green Today
http://stockcharts.com/scripts/php/candleglance.php?LEHNQ,LEHKQ,LHHMQ,LEHGQ,LEHPQ,LEHCQ,LEHPQ,LEHLQ,LEHMQ,LEHJQ|B|P14,3,3
STRUCTURE
Lehman Brothers and JP Morgan Chase (NYSE: JPM) Reach Settlement on Bankruptcy Case
February 25th, 2010
Lehman Brothers and JP Morgan Chase (NYSE: JPM) Reach Settlement on Bankruptcy Case
Lehman Brothers Holdings Inc (OTC:LEHMQ) will pay JP Morgan Chase & Co (NYSE: JPM) $557 million in cash and allow the bank to keep $7.7 billion in collateral to settle many of the bank’s claims in Lehman Brothers bankruptcy case.
JP Morgan, which is currently the second largest bank in the United States in terms of assets, will transfer some illiquid securities back to Lehman that have a face value of about $9 billion which it is holding as collateral, according to a new court filing made in New York yesterday.
The settlement between the two companies is subject to approval from the court. Lehman Brothers, which filed the largest bankruptcy in United States history back in 2008, said that the filing is not certain about the actual market value of the securities that are being returned.
Lerhman spokeswoman Kimberly Macleod said in a statement that “The settlement allows Lehman to more efficiently manage billions of dollars worth of its illiquid assets thereby maximizing the return on those assets for the benefit of its creditors,”
She continued, “The parties to the settlement have reserved all rights with respect to claims they have against each other.”
http://www.americanbankingnews.com/2010/02/25/lehman-brothers-otclehmq-and-jp-morgan-chase-nyse-jpm-reach-settlement-on-bankruptcy-case/
*******
IMO ... With the JPM settlement one would assume the $29 billion claim against Lehman has been removed. This is a major PLUS for the LEHMAN Balance Sheet -- an adjustment of $ 29 Billion off the liability side.
*******
Lehman, JPMorgan Reach Deal on Billions in Claims (Update2)
http://www.businessweek.com/news/2010-02-25/lehman-jpmorgan-reach-deal-on-billions-in-claims-update2-.html
Feb. 25 (Bloomberg) -- Lehman Brothers Holdings Inc. will pay JPMorgan Chase & Co. $557 million in cash and let it keep $7.7 billion in collateral in a deal to settle some of the bank’s claims in Lehman’s bankruptcy case.
JPMorgan, the second-largest U.S. bank by assets, will transfer back to Lehman “illiquid securities” with a face value of $9 billion that it is also holding as collateral, according to a court filing yesterday in New York.
The settlement is subject to court approval. Lehman, which filed the biggest bankruptcy in U.S. history in 2008, said in the filing it isn’t sure of the actual market value of the securities being returned.
“The settlement allows Lehman to more efficiently manage billions of dollars worth of its illiquid assets thereby maximizing the return on those assets for the benefit of its creditors,” Lehman spokeswoman Kimberly Macleod said in an e- mailed statement. “The parties to the settlement have reserved all rights with respect to claims they have against each other.”
David Wells, a JPMorgan spokesman in London, declined to comment.
Under Seal
Lehman’s brokerage used JPMorgan as its primary clearing bank and deposited billions in collateral, including the illiquid securities, with the New York-based bank. An examiner probing Lehman’s failure has said he aims to make public a report filed under seal on whether banks such as JPMorgan may have contributed to the insolvency of the fourth-largest investment bank.
JPMorgan in the summer of 2008 began requiring billions of dollars of collateral from Lehman to guarantee its borrowings, according to the filing. In addition to the illiquid securities, the bank took cash and money market funds valued at $8.57 billion from Sept. 9 to 12, Lehman said.
After Lehman’s Sept. 15, 2008 bankruptcy, JPMorgan filed proofs of claim of more than $29 billion, reducing the amount over time by using collateral previously deposited by Lehman, according to the filing. The remaining balance will be paid by the current deal, Lehman said.
The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
--Editors: Peter Chapman, Mary Romano.
To contact the reporter on this story: Linda Sandler in New York at +1-212-617-2398 or lsandler@bloomberg.net.
To contact the editor responsible for this story: Anthony Aarons at +44-20-7673-2227 or aaarons@bloomberg.net.
*******
Lehman Holdings Family All Green Today
http://stockcharts.com/scripts/php/candleglance.php?LEHNQ,LEHKQ,LHHMQ,LEHGQ,LEHPQ,LEHCQ,LEHPQ,LEHLQ,LEHMQ,LEHJQ|B|P14,3,3
STRUCTURE
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
