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

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note