JPMorgan Wants Appeal On ‘Seismic’ Loan Ruling

JPMorgan claims a clerical error by its team of lawyers led to a “seismic” ruling on its $1.5 billion loan to General Motors. GM’s bankrupt predecessor had little to repay creditors, so the creditors pursued the collateral from JPMorgan’s $1.5 billion loan. The bank’s lawyers mistakenly gave up its rights to security for the loan, and though the bank acknowledged the error, an appeals court last month sided with GM’s creditors. The ruling has “profoundly troubling consequences for any business that depends on bedrock agency principles to protect its interests,” JPMorgan said.