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Wednesday, July 25, 2012

CONFIRMED AT LAST: The attempted cover-up of how JP Morgan torpedoed Lehman Brothers | A diary of deception and distortion

CONFIRMED AT LAST: The attempted cover-up of how JP Morgan torpedoed Lehman Brothers | A diary of deception and distortion

 Around the time of the Lehman disaster, a senior insider at the firm relayed to me what seemed an astonishing allegation: that in the weeks prior to the eventual collapse, JP Morgan deliberately withheld huge monies owed to Lehman in order to make the bankruptcy a certainty from which they could benefit. I relayed this story to another contact the following year, and he not only corroborated the charge, he also said he was sure Barclays had done the same. The now disgraced Barclays CEO Bob Diamond took over Lehman in a fire sale only weeks later (using taxpayers’ money as a bridging loan to do it) and rapidly built up a commanding position for the division he then headed up, Barcap  – the investment arm of the bank.

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