No JPMorgan Executives To Be Fined In Madoff Accord

Jan 7 2014 | 2:04am ET

When federal authorities announce a more than $2 billion settlement with JPMorgan Chase this week over its failure to disclose concerns about Bernard Madoff, the bank's executives will be spared.

JPMorgan is expected to accept a deferred-prosecution agreement and acknowledge the facts of the government's case against it. But no individuals will be fined; instead, the bank will pay the entirety of the settlement, The Wall Street Journal reports.

Most of the money collected will go to Madoff's victims.

Federal prosecutors have been investigating JPMorgan's failure to file a suspicious activity report with U.S. regulators just before Madoff's $65 billion Ponzi scheme unraveled. The bank, which was Madoff's primary banker for decades, filed a similar report with British regulators about a month before Madoff's arrest five years ago.

Federal law requires banks to file SARs when they "detect certain known or suspected violations of federal law or suspicious transactions." JPMorgan has denied foreknowledge of Madoff's scam.

The deferred-prosecution agreement will be the first ever with a major U.S. bank, although several foreign banks have accepted them.


In Depth

Q&A: Filippo Pignatti Morano On The Ultimate Alternative Investment...Classic Cars

Jan 29 2015 | 12:37pm ET

In 2011, Filippo Pignatti Morano launched a fund to invest in classic cars. FINalternatives...

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

Five Tips For Successfully Marketing Your Hedge Fund

Jan 30 2015 | 9:14am ET

When it comes to the hedge fund industry, the notion of “build it and it will...

 

Editor's Note