NEW YORK (By Caroline Humer) – Lehman Brothers and Barclays deceived JPMorgan Chase & Co with bad assets that the failed investment bank’s own employees dubbed “goat poo,” according to new court papers that escalate a legal battle between the financial firms.
JPMorgan filed new court claims in the case, contending that Lehman left it with $25 billion (£15.4 billion) in unpaid loans secured by undesirable assets like those left out of the sale to Barclays.
Lehman Brothers Holdings Inc. filed for bankruptcy on September 15, 2008 and then quickly sold its prize investment banking assets to Barclays Bank. JPMorgan had been Lehman’s banker.
The court papers, filed in U.S. Bankruptcy Court in Manhattan on Thursday, said that Barclays and Lehman called certain Lehman assets “toxic waste” and “goat poo” and knowingly excluded them from their sale agreement.
Check out the rest here…
AMENDED COUNTERCLAIMS OF JPMORGAN CHASE BANK, N.A. below…