Lehman receives $138 billion of post-bankruptcy advances from JPMorgan Chase

By Caroline Salls

Pittsburgh, Sept. 16 - Lehman Brothers Holdings Inc. and its affiliates have received $138 billion in post-bankruptcy advances from JPMorgan Chase Bank, NA in the past two days to clear and facilitate the settlement of customer securities transactions and to avoid a disruption of the financial markets, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The $87 billion advance made on Monday has been repaid by the Federal Reserve, according to the filing.

JPMorgan Chase also made a $51 billion advance on Tuesday at the request of Lehman and the Federal Reserve Bank of New York.

On Tuesday, the court confirmed that JPMorgan Chase's clearing claims stemming from these and any other post-bankruptcy advances will be allowed as claims under related guarantee agreements and that they will be secured by holding company collateral.

Without this confirmation, Lehman said JPMorgan Chase would not be able to continue making post-bankruptcy advances at the company's request.

New York-based Lehman Brothers Holdings is the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15. Its Chapter 11 case number is 08-13555.

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