NEW YORK — A judge Wednesday approved a deal tentatively resolving a $7.68 billion claim JPMorgan Chase & Co. has against Lehman Brothers Holdings Inc. stemming from controversial collateral demands made by JPMorgan.

The settlement, approved by the judge overseeing Lehman's bankruptcy case, allows JPMorgan to keep $7.1 billion in cash collateral it's holding while transferring a pool of illiquid securities to Lehman that Lehman says could be worth billions of dollars.

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