Updates to clarify status of ongoing legal disputes involving JPMorgan and WaMu.
NEW YORK (
appears to be hitting Barclays' shares, but the dispute involving
is drawing far less attention.
WaMu and JPMorgan are also fighting it out in the courts, with both companies laying claim to $4 billion worth of deposits, according to an article from June on
. The article cites an attorney for WaMu who says more than $10 billion is at stake in the case.
The Barclays-Lehman case, which returned to the headlines last week, appears to be weighing on Barclays' shares, which have lagged those of European rivals, including
over the last 10 days, as well as the stocks of many U.S. banks, including
Bank of America
and, yes, JPMorgan, which is up roughly 20% since the beginning of June.
In an earlier column, I pointed out that JPMorgan has said it
expects to be sued in relation to the Lehman Brothers case.
Buyers of JPMorgan's stock may be examining the facts of the claims of both WaMu itself and its creditors, as well as the potential ones by Lehman and deciding they won't gain much traction. But there's also a chance that these issues aren't even on their radar, as they have received far less attention than the Lehman-Barclays brouhaha. If that's the case, and JPMorgan suddenly announces a big settlement, it is more likely to be an unpleasant surprise than a pleasant one for shareholders.
Written by Dan Freed in New York