JPMorgan Chase Hits Back at Lehman
NEW YORK (
) --
JPMorgan Chase
(JPM) - Get Report
is countersuing
Lehman Brothers
alleging the bankrupt investment bank engaged in "collusion and deception" in 2008 in persuading JPMorgan to lend it more than $70 billion shortly after it filed for bankruptcy, according to the
Wall Street Journal
.
According to the
Journal
, the lawsuit was filed Wednesday with the U.S. Bankruptcy Court in Manhattan. In the suit, J.P. Morgan alleges that Lehman and
Barclays
(BCS) - Get Report
misled it to believe that the loans would be repaid in full.
Instead JPMorgan left with $25 billion of unpaid loans, primarily collateralized by Lehman's "most toxic" securities, according to several media reports citing the lawsuit.
Two years ago, Barclays ended up acquiring a large portion of Lehman's assets. Spokeswoman for both companies did not comment to the
Journal
.
Lehman had originally filed a lawsuit against JPMorgan back in May, alleging the bank drained it of billions as it collapsed and that JPMorgan CEO Jamie Dimon and other top executives used inside knowledge in order to seize Lehman during its downfall.
JPMorgan's collateral seizure in September 2008 contributed to Lehman's collapse after triggering a liquidity squeeze, the
Journal
said citing Lehman's lawsuit.
JPMorgan shares were rising 2.6% to $39.15 on volume of about 17 million at midday.
-- Written by Laurie Kulikowski in New York.
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Laurie Kulikowski
.
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