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JPMorgan settles $150m sec lending suit
21 March 2012
JPMorgan has agreed to a $150m securities lending settlement in New York
JPMorgan Chase has agreed to a $150m securities lending settlement, according to Reuters.
The settlement was made to resolve claims by a number of pension funds after the bank invested their securities lending cash collateral in a Sigma Finance structured investment vehicle that collapsed in 2008.
The suit was filed in New York by the $1.5bn American Federation of Television and Radio Artists Retirement Fund (AFTRA), the $507m Imperial County Employees’ Retirement System and the Investment Committee of the Manhattan and Bronx Surface Transit Operating System
BNY Mellon and Wachovia also experienced lawsuits related to the Sigma vehicle.
JPMorgan declined to comment.