JPMorgan Chase to pay $1.7B in Madoff settlement
From Boston Business Journal
By Matthew L. Brown
January 7, 2014
JPMorgan Chase & Co. has agreed to pay $1.7 billion to settle government allegations that it ignored the warning signs of Bernard Madoff’s $50 billion Ponzi scheme, the U.S. Justice Department said Tuesday.
Significantly, the settlement includes a “deferred prosecution” agreement that allows the bank to avoid prosecution for two years, but requires it to admit it failed to prevent Madoff from ripping off investors.
With assets of nearly $2.5 trillion, JPMorgan (NYSE: JPM) is the largest U.S. bank. It was Madoff Investment Securities’ primary bank. The $1.7 billion settlement is the largest won by the justice department for a violation of the bank secrecy act.
Mark Williams, a finance professor at BU and author of ‘Uncontrolled Risk,’ said: “JPMorgan’s board and shareholders just received nearly two billion more reasons to fire CEO Jamie Dimon.”
Read the article at: BizJournals.com