Unintended Consequence – Inside Look at JPMorgan’s Costly Mistake



In late January, we reported that JPMorgan Chase lost a court battle with General Motors’ predecessor’s creditors over a $1.5 billion term loan as a result of human error that caused the bank to relinquish its rights as a lender by mistake. The article noted that the U.S. Court of Appeals in Manhattan sided with the creditors, adding that the bank authorized the document that waived its rights to the security interest and therefore couldn’t retroactively change it. In early February 2015, JPMorgan Chase asked an appeals court to reconsider the ruling, saying the decision caused a “seismic” shift in the law.

Because we were curious about the “story behind the story,” we spoke to one our regular contributors on the ABF Journal side of our business who agreed to provide some background and perspective on the case.

Ruskin Moscou Faltischek senior partner Jeffrey A. Wurst was kind enough to provide his insights and take on the case.

More on monitordaily: Unintended Consequence — JPMorgan’s Costly Mistake


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Terry Mulreany
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