JPMorgan Chase Faces $2B Madoff Penalty
(NEW YORK) -- JPMorgan Chase is close to making another big payout to federal regulators. This time, the alleged wrongdoing involves what the bank didn’t tell investors after receiving warnings that Bernard Madoff’s money management business was a fraud. The latest settlement would mean the biggest U.S. bank has paid about $20 billion to settle government investigations and lawsuits in the past 12 months.
According to published reports, an announcement is likely this week. JPMorgan Chase would pay about $2 billion in penalties related to Madoff and most of the money will go to his victims.
The New York Times says the Madoff settlement “would also involve a so-called deferred prosecution agreement, a criminal action that would essentially suspend an indictment as long as JPMorgan acknowledged the facts of the government’s case and changed its behavior.”
That kind of agreement is very unusual for a big bank.
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