A none too pleased junior rainmaker writes: Continue reading »
JPM
JPM may be a large financial institution but it will notice things like a $246 million revolving line of credit not being paid back- at all. Illinois-based bank holding company FBOP Corporation, which owns a group of real estate focused community banks in Arizona, California, Texas, and Illinois is probably hoping that somebody at JPM will buy the ‘check is in the mail excuse’ long enough to either panhandle for the last million or flee the country. FBOP was required to pay just under $248 million in principal, accrued but unpaid interest, and fees on May 28th but it apparently slipped their minds and now Jamie is about to bust out the brass knuckles.
JP Morgan Chase sues FBOP Corp. [Chicago Tribune]
Russian-American investor, Len Blavatnik, whose industrial holding company, Access Industries, reportedly lost $98 million on subprime investments wants to have a word with the House of Dimon. Blavatnik alleges his JPM banker, Ted Ufferfilge, had a unique interpretation of a conservative, low-risk strategy for his investments is suing JPM for his losses. When the subprime market started to tank and Blavatnik wanted out, Ufferfilge gave him those soothing words of wisdom- the investments were “money good”. JPM points out that anybody vulnerable enough to wind up in subprime investments qualifies as a “sophisticated investor” and therefore the lawsuit is frivolous.
“We believe this lawsuit is meritless and a transparent attempt to recover losses resulting from the unprecedented market downturn. We intend to defend this matter vigorously.”
Company Is Planning to Sue Chase Over Investment Losses [NYT]
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