( AP ) - Deutsche Bank lost a bid to force JP Morgan Chase & Co to hand over $47.6 million recovered in internet company Genuity Inc's bankruptcy, after a federal judge ruled the German bank had breached an agreement with Genuity.
Judge Sidney H. Stein of the US District Court in Manhattan said Deutsche Bank could not recover the disputed money being held by JP Morgan on behalf of a group of banks. He said Deutsche Bank violated a credit agreement that Genuity had with the banks when it declined to lend the company $127.5 million a few months before it filed for bankruptcy.
"To allow Deutsche Bank's proposed distribution would reward Deutsche Bank for failing to fund the July advance, and it would do so at the expense of the other eight funding banks," Stein wrote.