NEW YORK: US banking giant JPMorgan Chase agreed Thursday to pay some $800 million to settle claims stemming from the massive bankruptcy of Wall Street firm Lehman Brothers in 2008, a court trustee said.
James Giddens, the trustee for Lehman Brothers, said the cash and securities would help cover some of the losses in the massive collapse that was a key point in the global financial crisis.
"This is a milestone... The agreement will increase funds held by the LBI Estate available for distribution to public customers of LBI by more than $800 million in cash and securities," Giddens said.
He said the deal came after both parties cooperated in working through "complex and difficult issues."
Lehman's September 2008 collapse marked the largest bankruptcy in history, triggering a financial shockwave that dragged the global economy into recession.
Claims from creditors were believed to be a whopping $875 billion, much of which would be written off under the reorganization.
A large portion of Lehman's assets were acquired by British bank Barclays for $250 million.
JPMorgan Chase said the settlement would not affect its results.
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