Is JP Morgan Buying Lehman Brothers’ Commercial Bank?

In a notice issued on September 10th The Depository Trust Company, or DTC for short, announced that effective at the opening of business on September 15th JPMorgan Chase Bank, National Association’s account with the depository and clearing giant would activate an additional account with the DTC named JPMorgan/Lehman Brothers Commercial Bank (LBR).

Lehman Brothers Commercial Bank is a wholly owned subsidiary of Lehman Brothers. It is an industrial bank chartered in Utah, regulated by the FDIC and the State of Utah, which began business in August 2005. The bank’s major focus is to grant commercial loans and commercial real estate loans to major corporations, short-term warehouse loans to borrowers secured by specific assets, and interest-rate products.

Here is the Important notice from The Depository Trust Company announcing the DTC account activation for JP Morgan / Lehman Brothers Commercial Bank.

---

UPDATE:

No, JPM did not participate in the LEH unwinding. The company subsequently filed a request with the DTC to close the JPMorgan/Lehman Brothers Commercial Bank (LBR) account at the end of business on the 15th of September. What the account represented, if anything, is undetermined.

http://www.dtcc.com/downloads/legal/imp_notices/2008/dtc/com/3890-08.pdf

Tags: Bailout, Credit Crisis, JP Morgan, Lehman

This entry was posted on Friday, September 12th, 2008 at 2:28 pm and is filed under Bailout, Clearing Houses, Federal Reserve, Hedge Fund, Subprime. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Comments are closed.