Rival banks cited in Lehman case

Friday 12th March 2010, 3:44am

JP Morgan Chase and Citigroup helped cause the illiquidity that led to the collapse of Lehman Brothers by making new demands for collateral, the failed US investment bank, a court-appointed examiner said. In a 2,200-page report, which was made public yesterday, examiner Anton Valukas, chairman of law firm Jenner & Block, said Lehman used accounting gimmicks and had been insolvent for weeks before it filed for bankruptcy in September 2008, however he did not find extensive wrongdoing.