Lehman to sue JP Morgan for 'lost value'

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Lehman Brothers is to sue JP Morgan Chase for billions of dollars of 'lost value'.

Lehman Brothers Holdings, which is managing the remnants of the fallen bank's assets, claims that JP Morgan 'siphoned off' the cash in the days immediately before its high profile collapse. JP Morgan was Lehman Brothers' main short-term lender before it defaulted in September 2008. The lawsuit claims JP Morgan's demanding of $8.6bn of collateral as credit markets tightened made a significant contribution to the collapse. Lehman argues JP Morgan knew of its precarious position and threatened to deprive the bank of critical clearing services unless it posted the $8.6bn. "On the brink...

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