Daily News: March 1, 2013

JPMorgan: London Whale Didn’t Cause Lehman Bankruptcy

Fox Business News reported that JPMorgan is saying that its former trader known as the “London Whale” was not responsible for Lehman Brothers Holdings’ bankruptcy and should not be dragged into an $8.6 billion lawsuit accusing the largest U.S. bank of causing it.

Fox notes that in a Manhattan bankruptcy court filing, JPMorgan said Lehman knew from documents it produced itself that the trader, Bruno Iksil, had nothing to do with allegedly mismarked derivative trades about which Lehman wanted to take his deposition.

According to Fox, Lehman is accusing JPMorgan of hastening its bankruptcy by using what it learned in that capacity to extract $8.6 billion of collateral in the four business days prior to the September 15, 2008, Chapter 11 filing. Citing Iksil’s “practice of intentional mismarking,” Lehman said it wanted to review trades that led to a large, “unjustified” collateral call on September 9, 2008.

To read the entire Fox Business news story, click here.