The Traderszone Network

Published in TZ Latest News 21 January, 2015 by The TZ Newswire Staff

U.S. court says JPMorgan must live with $1.5 billion paperwork error

A federal appeals court in Manhattan ruled on Wednesday that, although it was not JPMorgan’s intention, it clearly authorized its law firm to file papers in 2008 that unsecured much of a loan to General Motors. During GM’s Chapter 11, secured lenders were repaid in full while unsecured creditors lost out. JPMorgan said it was reviewing the decision and its options. After GM filed for bankruptcy protection in 2009, the official committee of unsecured creditors asked a judge to rule that the $1.5 billion syndicated loan administered by JPMorgan was unsecured because of the mistake.