10-06-2008, 03:58 AM
|
#2
|
|
Senior Member
Join Date: Aug 2007
Location: Okolona, Ky.
Posts: 5,911
|
So's this kinda stuff don't happen again...
Bank blamed for Lehman collapse
October 05, 2008 - US bank JPMorgan Chase stands accused of precipitating the collapse of American investment bank Lehman Brothers by freezing Lehman assets days before it filed for bankruptcy protection.
Quote:
Citing documents filed with a New York bankruptcy court late last week, the , the Sunday Times reported that Lehman creditors have accused JPMorgan of freezing $US17 billion ($22 billion) in cash and securities on Friday, September 12. Lehman filed for bankruptcy the following Monday.
"The creditors' committee understands that LBHI (Lehman Brothers Holding Inc) had at least $US17 billion in excess assets which were held at JPMC (JPMorgan Chase) on the Friday going into the weekend before its bankruptcy filing,'' the court documents reportedly allege. The creditors' committee further understands that, on September 12, 2008, JPMC refused to allow LBHI access to its excess assets and instead 'froze' LBHI's account.
"In freezing LBHI's assets, JPMC was purportedly holding all of LBHI's assets as a potential offset against any claims JPMC may have had against LBHI.'' The documents continued to say that "as a result of JPMC's actions, LBHI suffered an immediate liquidity crisis, that could have been averted by any number of events, none of which transpired''.
More Bank blamed for Lehman collapse | Business Breaking News | News.com.au
|
|
|
|
Battered financial industry faces more oversight
Linear Mode
