JPMorgan Loses $1.5B in Court Fight with GM Creditors
Bloomberg reported that JPMorgan Chase lost a court fight with General Motors’ predecessor’s creditors over a $1.5 billion loan due to giving up its rights as a bank lender by mistake.
Bloomberg said that the creditors sought a ruling stating that JPMorgan relinquished its rights to collateral securing the loan. The article noted that the U.S. Court of Appeals in Manhattan sided with the creditors noting that the bank authorized the document that waived its rights to the security interest, and therefore couldn’t retroactively change it.
To read the entire Bloomberg article, click here.