US banking giant J.P. Morgan 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 co-operated 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 reorganisation.
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