Know when to fold

15 June 2005 By Rob Cox Follow @rob1cox

This time around, JP Morgan swiftly calculated that the benefits of a quick cavein outweighed those from a protracted fight. This is sensible given its costly missteps over WorldCom and the outcomes of other court fights, like Morgan Stanley s against Perelman.

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JP Morgan will pay $2.2bn to investors in Enron to settle claims the bank helped the energy firm that went bust in 2001 defraud investors.

The move follows a $2bn settlement reached with Citigroup last week in the case, led by the Board of Regents of the University of California.

Bank of America and Lehman Brothers settled the case for a combined $492m. The case's remaining defendants are Merrill Lynch, Credit Suisse First Boston, Barclays, TorontoDominion Bank, Royal Bank of Canada, Royal Bank of Scotland and Goldman Sachs.

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Know when to fold

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