A judge in New York Federal bankruptcy court approved a settlement between the Lehman Brothers brokerage and JP Morgan Chase (NYSE:JPM) in which JP Morgan will pay $861 million to the liquidating brokerage-dealer.
Judge James Peck singed off on the settlement, the largest yet reach by James W. Giddens, the trustee winding down Lehman's American brokerage unit.
Peck commented, "I'm satisfied that this is indeed an excellent result of the complicated settlement. This is obviously a very substantial step forward of the LBI liquidation." LBI is Lehman's brokerage subsidiary, Lehman Brothers Inc.
"The court's approval of the J.P. Morgan agreement marks a milestone in the administration of the LBI Estate to recover assets to pay customer claims. This is a significant and positive result from two years of investigation and close cooperation with JP Morgan" Giddens, also a Hughes Hubbard & Reed partner, said in a statement.
Shares of JPMorgan Chase are trading down 2.31% at $39.75.