A major US bank is set to face regulatory action for its role in the collapse of Lehman Brothers in 2008, it has been reported today (4 April).
The demise of this financier four years ago is seen by many as the catalyst behind the global economic downturn and it has now emerged that JPMorgan will be penalised by the Commodity Futures Trading Commission (CFTC).
That is according to people briefed on the matter, who have told the New York Times that the CFTC is planning to issue a civil case against JPMorgan at some point this week.
Such a move will represent the first case of federal ruling due to the downfall of Lehman Brothers and the news source indicated JPMorgan will have to pay a fine of around $20 million.
It is thought this action is being brought about because of the bank's decision to overextend credit to Lehman Brothers for around two years prior to its collapse.
By Gary Cooper