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

Dillon Eustace: The Advantages of ICAVs

Feb 11 2016 | 7:51pm ET

As the growth of alternative investment vehicles continues, global asset managers...

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

Hedging Against Reputational Risk in the 21st Century

Feb 12 2016 | 7:18pm ET

For investors, the first step in researching a new fund or manager is to google...