OMG both the “Lehman Brothers” and “Bitchfights” tags get to ride again! This time – it’s The Ghost Of Lehman Brothers vs. The House That Jamie Built:
The lawsuit, filed in federal bankruptcy court in New York City, takes special aim at senior JP Morgan officials, including CEO Jamie Dimon, alleging that these officials triggered Lehman’s meltdown by demanding $8.6 billion in collateral from the firm in September of 2008. The lawsuit contends that JP Morgan improperly took advantage of inside knowledge it had of Lehman deteriorating finances because it acted as a “clearing bank” or broker for other firms that were lending Lehman money during its final weeks and months. The suit seeks billions of dollars in damages.
JP Morgan vigorously denies the charges, and now FOX Business Network has obtained the firm’s preliminary plan to fight the charges if and when both sides go to court (the firm will likely seek a dismissal of the case). According to a senior JP Morgan executive, the plan is to put Lehman itself on trial, or to be more exact and former executives who ran the firm amid its deteriorating financial condition in the summer and fall of 2008.
There’s no defense like a good offense, and that’s the route that $JPM is choosing to take. It sounds like their plan is to point out the copious quantity of fail going on at Lehman, including but not limited to its excessive leverage, its proclivity to mark assets to whatever sounded good at the time, and, of course, to throw Dick Fuld under the bus, since doing so is what we’d pretty much call a “quick win” in business parlance.
Or to use the super-succinct phrasing of an anonymous senior official at $JPM:
“We are going to be really f—–g aggressive with this case because this is a total waste of f—–g time!”
Your lips to Jamie’s ears, anonymous senior official.