JPMorgan Chase & Co will return more than $800 million of cash and securities to the trustee winding down the brokerage unit of Lehman Brothers Holdings Inc <LEHMQ.PK> after Federal bankruptcy court approved a settlement deal Thursday.
Continue Reading Below
The brokerage, Lehman Brothers Inc, is being liquidated by trustee James Giddens, who is collecting assets to return to customers who held accounts at Lehman when it filed for bankruptcy in September 2008.
The trustee had announced the settlement in April. JPMorgan was the brokerage's ``clearing'' bank, acting as a go-between in Lehman dealings with other parties and, in that role, holding various Lehman assets.
``This is a significant and positive result from two years of investigation and close cooperation with JPMorgan,'' Giddens said in an emailed statement.
The settlement includes $755 million in cash and $106 million in securities, based on values as of Sept. 19, 2008.
JPMorgan said in April when the settlement was announced that it would not have a material financial impact.
The Lehman Brothers brokerage estate had assets of $22.78 billion, including $14.35 billion in securities, as of Aprill 22, 2011, according to a recent report by the trustee.
The case is In re: Lehman Brothers Inc, U.S. Bankruptcy Court, Southern District of New York, No. 08-01420. (Reporting by Caroline Humer, editing by Gerald E. McCormick)