Lehman’s Cash Crunch Caused by Lender JPMorgan, Creditors State

October 5, 2008 by · Leave a Comment
Filed under: Industry News 

This is interesting.  It looks as these proceedings take place, more details and facts are coming out to see how the collapse of these major financial institutions took place in such a quick fashion.  Lehman Brothers’ creditors claimed that JPMorgan had $17 billion dollars of their asset in safekeeping when they had the “freeze” and then subsequent takeover.

News Piece:

 Lehman Brothers Holdings Inc.’s main lender and clearing agent, JPMorgan Chase & Co., caused the liquidity crisis that led to Lehman’s collapse, creditors said.

JPMorgan had more than $17 billion of Lehman’s cash and securities three days before the investment bank filed the biggest bankruptcy in history on Sept. 15, the creditors committee said in a filing Oct. 2 in bankruptcy court in Manhattan. Denying Lehman access to the assets on Sept. 12, the bank “froze” Lehman’s account, the creditors claimed.

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