JPMorgan to pay over $2.5 billion in Madoff fraud

[Jesus Malverde]

Source: SFGate

JPMorgan Chase & Co., already beset by costly legal woes, will pay more than $2.5 billion for ignoring obvious warning signs of Bernard Madoff's massive Ponzi scheme, authorities said Tuesday.

The nation's largest bank will forfeit a record $1.7 billion to settle criminal charges, plus pay an additional $543 million to settle civil claims by victims. It also will pay a $350 million civil penalty for what the Treasury Department called "critical and widespread deficiencies" in its programs to prevent money laundering and other suspicious activity.

The bank failed to carry out its legal obligations while Madoff "built his massive house of cards," George Venizelos, head of the FBI's New York office, said at a news conference.

"It took until after the arrest of Madoff, one of the worst crooks this office has ever seen, for JPMorgan to alert authorities to what the world already knew," he said.

Read more: http://www.sfgate.com/news/crime/article/JPMorgan-to-pay-over-2-5-billion-in-Madoff-fraud-5120459.php

[Lint Head]

1. Settle. Settle. Settle. Whoopie! At least only one greedy bastard went to jail.

[truthisfreedom]

3. No others go to jail, after ruining countless lives.

America, fuck yeah!

[DeSwiss]

4. K&R

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[7962]

5. And yet nothing bad happens to anyone in the SEC who were warned about Madoff and did nothing?

I have no problem making these "banks" pay out the wazoo for getting wrapped up in schemes like this, but where is the punishment for the govt watchdogs who let it go on for so long? Why are THEY not out of a job? Why is it that anytime anyone in the govt screws up they end up "retiring" and keeping those benefits and pay?

[L0oniX]

6. Chump change.

[hugo_from_TN]

7. Interesting article on why the DOJ doesn't bring criminal charges

http://www.cnn.com/2014/01/07/politics/jpmorgan-chase-regulators-prosecutors/

Prosecutors complain that when they push for tougher penalties, regulators warn of consequences that could mean damage to the U.S. economy. Regulators say they are required by U.S. law to pull banking licenses if banks are convicted of criminal charges.
Hubbard said Tuesday that federal law requires the regulator to initiate proceedings that could lead to revoking banking charter if a bank is convicted of banking law violations. "DOJ independently decides whether to pursue criminal charges and prosecution against a bank for criminal violations of [money-laundering] statutes. The OCC does not make recommendations regarding criminal prosecution."

[Eugene]

8. NY judge approves non-prosecution agreement resolving JPMorgan Chase criminal Madoff case

Source: Associated Press

NY judge approves non-prosecution agreement resolving JPMorgan Chase criminal Madoff case

Article by: LARRY NEUMEISTER , Associated Press Updated: January 8, 2014 - 5:35 PM

NEW YORK — A judge on Wednesday approved a non-prosecution agreement reached after JPMorgan Chase & Co. agreed to pay $1.7 billion to settle criminal charges stemming from its failure to report its concerns about Wall Street swindler Bernard Madoff's private investment service.

U.S. District Judge Kevin Castel said there was nothing about the deal between the nation's largest bank and the government that would "require judicial intervention to protect the integrity of the process." He said it seemed the agreement was "knowing and voluntary" and in the best interests of the public.

The judge's approval came a day after the deal was announced in Manhattan by federal authorities. The agreement requires the bank to pay the $1.7 billion forfeiture — the largest by a U.S. bank for a Bank Secrecy Act violation — and to acknowledge failures in its protections against money laundering and reform them.

The judge set a January 2016 court date for the government to report whether the bank has complied with the agreement.

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Read more: http://www.startribune.com/politics/national/239327551.html