JPMorgan Chase & Co. (JPM) collected almost $1.9 billion from collateral it obtained on lending to the London-based investment vehicle Sigma while clients lost almost all the $500 million they invested with the fund, the New York Times reported, citing court documents.
Joseph Evangelisti, a spokesman for JPMorgan, rejected the accusations and said the bank lent Sigma more than $8 billion to help it survive and did its best to protect its clients, the newspaper reported.
The suit claims that JPMorgan employees planned to profit from a collapse of Sigma even as employees in another of the bank’s unit left their customers’ money invested, the Times reported.
Many of the assets JPMorgan received as a security depost for its loans to Sigma appreciated in value and provided the bank with a large profit, the newspaper reported, citing the suit.
Click here for web link
To contact the editor responsible for this story: James Kraus at email@example.com