The lawsuit accused JPMorgan of using its ‘unparalleled access’ to inside details of Lehman’s distress to extract $8.6 billion of collateral in the four business days ahead of Lehman’s bankruptcy, including $5 billion on the final business day. According to the lawsuit, JPMorgan knew from this relationship that Lehman’s viability was fast weakening, and threatened to deprive Lehman of critical clearing services unless it posted an excessive amount of collateral.
Published 27 May 2010, 15:28 IST