J.P. Morgan Chase Settlement with Lehman Brothers Approved by Judge

J.P. Morgan Chase (NYSE:JPM) and Lehman Brothers Holdings received approval from a judge for the settlement agreement between the two companies.

Per the agreement, J.P. Morgan will receive cash and collateral from Lehman Brothers while they return about $9 billion in illiquid securities and real estate to Lehman.

Even though U.S. Bankruptcy Judge James Peck approved of the settlement, he had some reservations as to how it would benefit Lehman and its creditors.

Part of the settlement agreement was the inclusion of the right for each company to sue the other concerning claims and the legitimacy of the settlement later on. On Lehman’s part it would be the right to sue and recover money from J.P. Morgan.

Lawyers from Lehman added they have no problems with the settlement plan either as long as they are allowed to sure later.

Read on.