WASHINGTON (AP) — JPMorganChase & Co. will return assets worth $800million to lawyers representing the brokerage arm of failed investment bank Lehman Brothers Holdings Inc.
The cash and securities will be distributed to customers who held accounts with the brokerage, Lehman Brothers Inc., the lawyers said Thursday.
JPMorgan controlled the assets because it was the broker-dealer's clearing bank. A clearing bank acts as an intermediary, processing transactions in the securities markets on behalf of a brokerage.
JPMorgancooperated with the court-appointed lawyers seeking to recover assets for Lehman's customers. It held onto the assets until a formal deal could be struck.
A spokesman for JPMorgan said the settlement will not affect the bank financially.