JPMorgan Fights Demand For Madoff Docs.

Jan 7 2013 | 11:01am ET

JPMorgan Chase has until Friday to cough up documents sought by federal investigators, or face threatened if unspecified consequences.

The U.S. Treasury Department's inspector general ordered the bank to hand over documents sought by the Office of the Comptroller of the Currency by Jan. 11. It faces "further action" by Inspector General Eric Thorson if it fails to do so, he warned.

Refusal to produce the documents for OCC's probe of the Bernard Madoff Ponzi scheme "will have to be seen as a continuing purposeful impediment to the authority of the OCC," Thorson wrote.

JPMorgan has said the documents sought are protected by attorney-client privilege.

"This dispute does not go to the merits of the matter, but it does raise an important issue of principle: Whether we and other banks, large and small alike, have the fundamental right long recognized in this country to communicate freely with and seek confidential guidance from their lawyers," JPMorgan spokeswoman Jennifer Zuccarelli said.

Thorson said that the OCC would be unable to do its work if banks could withhold documents on the basis of attorney-client privilege.

The spat between the Treasury and JPMorgan Chase is the first word of an OCC probe into the Madoff fraud, and the second time in three months that the bank has had an attorney-client privilege run-in with a regulator. It won last time, in November, when a federal judge ruled it did not have to turn over e-mails to the Federal Energy Regulator Commission.

JPMorgan was sued for $19 billion by the trustee in the Madoff case, a claim that was dismissed. The trustee, Irving Picard, is appealing that ruling.


In Depth

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...