Risk.net

JP Morgan Chase made to sweat on $1 billion of Enron surety notes

Federal Judge, Jed Rakoff, ruled out any immediate judgement, saying he needed more time to consider the arguments presented to him in a New York courthouse by counsel for JP Morgan Chase and the insurance companies.

“To me the matter in this very interesting motion is not exactly on point with any case I’ve read,” said Rakoff. “I have not made up my mind about any issue in this case.”

The case centres on the use of surety bonds, which pay out when a named party fails to finish a project or