Tuesday, 30 September 2014
Last updated 9 min ago
Dec 10 2013 | 12:10pm ET
JPMorgan Chase could strike a deal with federal prosecutors before the end of the year over its failure to notify regulators about concerns it had with Bernard Madoff's operations.
A deferred-prosecution agreement between the bank and the U.S. Attorney's Office in Manhattan could come within the next few weeks or early next year, The Wall Street Journal reports. Such a deal would spare JPMorgan criminal charges if it does not violate the agreement for a certain period.
Prosecutors are investigating why JPMorgan did not file a suspicious activity report about Madoff with U.S. regulators just before Madoff's $65 billion Ponzi scheme collapsed in December 2008. The bank, which had worked with Madoff for two decades, had notified British regulators of its concerns about a month before Madoff's arrest.
On Oct. 28, 2008, JPMorgan warned the U.K.'s Serious Organised Crime Agency that Madoff's returns "appear too good to be true," and that "as a result" of its "concerns," the bank had filed a redemption notice from one Madoff feeder fund and was preparing to redeem from two others.
Suspicious activity reports are required when banks "detect certain known or suspected violations of federal law or suspicious transactions." Some 1.6 million such reports were filed last year, with JPMorgan itself accounting for more than one-tenth of the total.
The probe is part of a larger investigation into control failures at JPMorgan, which has denied knowing that Madoff was running a scam.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...