Courts Tells JP Morgan $1.5 Billion Dollar Loss On GM Loan Was Due To Lawyer Error

JPMorgan Chase & Co. lost another bid to reclaim security for a $1.5 billion loan to General Motors' bankrupt predecessor.

A federal appeals court Monday declined to reconsider a ruling that the bank had forfeited its collateral, whether it intended to or not.

In the long-running case, JPMorgan argued that its lawyers accidentally gave up its rights to the security for the loan and weren't authorized to act on the deal. After the appeals court sided with GM's creditors in January, groups of lenders weighed in to say that many companies might find it harder to borrow if lenders couldn't be confident that assets were backing money they advanced.

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