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

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of