Lehman Brothers estate sues JPMorgan Chase

Lehman Brothers blames JPMorgan Chase for driving it into bankruptcy

Published May 27, 2010 1:46PM (EDT)

The estate of Lehman Brothers has sued JPMorgan Chase, claiming JPMorgan helped drive Lehman into bankruptcy by forcing it into giving up needed cash reserves.

Lehman alleges that JPMorgan forced the now-failed bank to put up billions of dollars in collateral that sapped Lehman of the cash it needed to stay afloat.

Lehman filed for bankruptcy in September 2008, helping spark one of the worst financial crisis in U.S. history.

A spokesman for JPMorgan said lawsuit is without merit and JPMorgan plans to defend itself from the claims.

A bankruptcy examiner's report released earlier this year pins the blame for Lehman's collapse on executives and the bank for taking too many risks and misrepresenting its financial health.


By Stephen Bernard

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