Friday, 9 October 2015
Last updated 13 hours ago
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.
Oct 7 2015 | 4:57am ET
Charity A Leg To Stand On (ALTSO) will hold its 12th Annual Hedge Fund Rocktoberfest – NYC on October 15 and its 4th Annual Rocktoberfest - Chicago on October 22. Read more…