NYT/AP: J.P. Morgan to Settle Enron 'Megaclaims' Suit

[DeepModem Mom]

J.P. Morgan to Settle Enron 'Megaclaims' Suit
By THE ASSOCIATED PRESS
Published: August 16, 2005
Filed at 9:03 a.m. ET


NEW YORK (AP) -- Two banks agreed on Tuesday to pay at least $420 million to settle their parts of the ''Megaclaims'' lawsuit filed by Enron against 10 banks, alleging they ''aided and abetted fraud'' and could have prevented the energy trader's collapse.

JPMorgan Chase & Co. agreed to pay $350 million in cash to Enron Corp. and Toronto Dominion Bank agreed to pay $70 million. The companies also will forgo certain claims in Enron's bankruptcy proceedings while agreeing to pay more money to Enron for the ability to pursue others.

Enron said the bankruptcy claims that are part of the JPMorgan settlement have a value of $660 million, and that the settlement with JPMorgan could reach up to $1 billion. Toronto Dominion agreed to forgo claims value at almost $56 million, while paying $60 million to allow claims valued at $320 million that the company transferred to third parties.

New York-based JPMorgan said it does not expect its settlement, which is subject to the approval of the bankruptcy court, to have a ''material adverse impact'' on earnings.

''With today's agreement, we have put behind us another significant piece of our Enron exposure,'' said William B. Harrison Jr., JPMorgan's chairman and CEO, in a prepared statement....


http://www.nytimes.com/aponline/business/AP-Enron-Megaclaims.html

[Javaman]

1. reading the article, it appears as if the poor people who lost everything.

when enron went belly up, still get screwed. Not a dime to them.

[leesa]

2. So Enron continues to profit from their crimes.

Why isn't the criminal Kenny Boy in jail yet?

[melissinha]

3. i don't get it

and MARTHA had to go.... over $60k

[Judi Lynn]

4. Banks to pay Enron $420 million settlement

Aug. 16, 2005, 12:07PM

Banks to pay Enron $420 million settlement
By JOHN ROPER
Copyright 2005 Houston Chronicle

JP Morgan Chase and the Toronto Dominion Bank have agreed to pay a combined $420 million to settle a lawsuit accusing them and other financial institutions of helping Enron executives commit fraud that led to the energy giant's downfall.

Under terms of the settlement, JP Morgan will pay $350 million, and Toronto Dominion will pay $70 million to Houston-based Enron, while filed for bankruptcy in 2001 and is liquidating what's left to pay creditors.

The agreements bring to five the number of banks that have settled with Enron in the case, dubbed the "MegaClaims" lawsuits. Claiming that 11 banks "aided and abetted fraud and engaged in civil conspiracy," Enron says the settlements reached so far will add about $735 million in cash for its creditors.

Enron still has outstanding claims in the case against Barclays, Citigroup, Credit Suisse First Boston, Deutsche Bank AG and Merrill Lynch.
(snip/...)

http://www.chron.com/cs/CDA/ssistory.mpl/front/3312293
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