Mr Cooper Group Inc (COOP)

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NEW YORK — Lehman Brothers claims JPMorgan Chase made "unlawful threats" to coerce the now-failed investment bank to turn over $8.6 billion in collateral in the weeks before Lehman filed the largest bankruptcy in U.S. history.

In papers filed late Wednesday with U.S. Bankruptcy Court, Lehman said JPMorgan's claims should be considered "invalid and unenforceable" because they were a product of alleged threats and JPMorgan knew that the Lehman employee who signed off on the disputed guarantee "had no authority to do so."

Lehman leveled those allegations in its response to JPMorgan's demand that the court toss out a massive lawsuit Lehman filed in May.

That suit said JPMorgan chief executive Jamie Dimon and other top executives used inside knowledge to take advantage of Lehman as its financial state worsened. JP Morgan persuaded Lehman to turn over $8.6 billion in collateral in September 2008, triggering a liquidity squeeze that contributed to Lehman's collapse, the suit said. Dow Jones Newswires






Read more: Lehman alleges "threats" - The Denver Post http://www.denverpost.com/business/ci_16879830#ixzz18NSSGPWJ
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