The Banking and Strategy Initiative

Chillin' out till it needs to be funded

JP Morgan decked for overextending credit to Lehman for Two years

CFTC readily fined JP Morgan $20 mln for extending credit while Lehman was not creditworthy for more than two years and pulled the rug under its Collateral team for trying to hold on to customer funds from Lehman instead of turning over the cash to the regulators when bankruptcy was announced in September 2008

CFTC fined the $20 mln for unlawful use of customer segregated funds by the bank and has docked it for extending credit for two years even after the situation at Lehman was well past repair according to early reports.

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This entry was posted on April 4, 2012 by in Financial Markets and tagged , , , , , , , .

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