After Citigroup, it’s JPMorgan to pay Enron investors

After Citigroup, it’s JPMorgan to pay Enron investors

The collapse of Enron is proving to be a costly deal for a lot of people. Shareholders have already suffered huge losses. Though, now the people involved in the process are suffering. Some days back the Citigroup decided to cough up USD 2 Billion to the investors for involvement in the Enron fraud and now it is JPMorgan who is paying big bugs to get out of the legal hassles.

JPMorgan is the third largest bank in the United States and they would be paying around USD 2.2 Billion to settle their involvement in the lawsuit concerning the Enron scandal. This news represents the largest settlement deal in lawsuits against banks, advisers, and Enron executives in this particular case and it overtakes the money paid by Citigroup.

The lawsuit by the investors in the company claims that these banks and financial institutions helped Houston-based Enron continue operations and raise money even as the company was imploding. Some of the companies yet to settle are Barclays, Credit Suisse First Boston, Merrill Lynch, Toronto Dominion Bank, Royal Bank of Canada, Deutsche Bank and the Royal Bank of Scotland.

After the citigroup gave in, the market analysts predicted that more banks would be lured into settling to keep their reputation intact in the market. And we would not be surprised to hear more news of settlements in the coming days.