Did JPMorgan Chase Make Itself a Target In Fights Over Lehman Funds?
Posted by David Bario When JPMorgan Chase & Co. removed funds from accounts it maintained for three Lehman Brothers units just hours before they filed for bankruptcy last Friday, it frustrated plaintiffs who had targeted those units–and may have opened itself up to litigation over the Lehman funds. As soon as Lehman Brothers Holdings Inc, filed for bankruptcy on September 15, claims in state court in New York began piling up against Lehman Brothers Commodity Services, Inc., Lehman Brothers Special Financing, Inc., and Lehman Brothers Finance, S.A. Beginning with Bank of America, which demanded $470 million, dozens of plaintiffs who were counterparties in derivative transactions and swap agreements with the Lehman units sued, demanding either to be paid the value of their transactions or to get back millions of dollars in excess collateral that they had posted to cover their trades. (Goldman Sachs funds and billionaire energy trader T. Boone Pickens are among the other plaintiffs.) Now
