Jan. 7 - JPMorgan Chase agreed to pay $1.7 billion to settle charges with U.S. regulators that it violated laws by not revealing suspicious activity of convicted Ponzi schemer Bernard Madoff. Conway G. Gittens reports.
JP Morgan Chase is shelling out $1.7 billion to put to rest charges it failed to adequately report suspicious activity in the Bernie Madoff fraud. By law, the bank is supposed to monitor customer activity for money laundering and inform regulators. JPMorgan Chase admits it did not do the latter, even though bankers in more than one area noticed things weren't adding up when it came to Madoff's finances. As part of the settlement, the bank agreed not to apply for a tax deduction or tax credit for the $1.7 billion payment AND to tighten up anti-money laundering controls. The money is headed for Madoff's victims. Bernie Madoff is serving a 150-year prison term for defrauding thousands of investors in one of the biggest Ponzi schemes in modern history.