Bournemouth EchoJPMorgan Chase to pay $1.7bn to settle Madoff fraud case (From Bournemouth Echo)

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JPMorgan Chase to pay $1.7bn to settle Madoff fraud case

Bournemouth Echo: Bernard Madoff Bernard Madoff

JPMorgan Chase has agreed to pay $1.7bn (£1bn) to victims of the Bernard Madoff fraud following a settlement with US prosecutors.

The settlement comes after Federal prosecutors accused the bank of ignoring red flags about Madoff’s crimes.

“We recognise we could have done a better job,” said JPMorgan spokesman Jennifer Zuccarelli. The bank has agreed to improve its controls.

While JPMorgan acknowledged failures in its protections against money laundering, the settlement includes a so-called deferred prosecution agreement that allows it to avoid criminal charges.

No individual executives were accused of wrongdoing. JPMorgan was Madoff’s primary bank in the later years of a fraud that lasted for decades.

The bank had a relationship with Madoff dating back to 1986, according to documents released by the US Attorney’s office.

It ended in 2008 when Madoff revealed to the FBI that his investment advisory business was a Ponzi scheme.

According to the complaint, Madoff’s account – account 703 – received deposits and transfers totalling $150bn over the period from 1986 until the fraud was discovered in 2008, almost exclusively from Madoff Securities.

JPMorgan employees began raising red flags about the account from the late 1990s up until 2008, but no action was taken to alert US regulators.

The 75-year-old Madoff pleaded guilty to the fraud and is currently serving a 150-year prison sentence in the US.

Over the past year, JPMorgan has paid close to $20bn in settlements with regulators for various violations relating to the US financial crisis, the so-called ‘London whale’ trading loss, and manipulating the London inter-bank offered rate, or Libor.

JPMorgan boss Jaime Dimon has taken a proactive stance in ridding the bank of various investigations into its practices over the past year.

In his annual letter to shareholders from April 2013, Mr Dimon wrote: “I feel terrible that we let our regulators down.”

The bank is still facing scrutiny from US regulators over its current hiring policies in China.

Shares in JPMorgan fell slightly on news of the settlement.

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12:22pm Wed 8 Jan 14

whataboutthat says...

NIce to have a corrupt banking organsiation at the heart of our local employment/economy. Ditto Barclays in Poole, ad nauseum, HSBC in the High Street - cocaine/drug cartel money laundering, Co-Op with their 1.5billion squids 'black hole' in their accounts. RBS.Lloyds TSB - about the only 'clean' bank is Nationwide but then again they are a building soc still. Everything's fine and dandy and no banker is looking at four tiled walls. Really, great, really great Britain.
NIce to have a corrupt banking organsiation at the heart of our local employment/economy. Ditto Barclays in Poole, ad nauseum, HSBC in the High Street - cocaine/drug cartel money laundering, Co-Op with their 1.5billion squids 'black hole' in their accounts. RBS.Lloyds TSB - about the only 'clean' bank is Nationwide but then again they are a building soc still. Everything's fine and dandy and no banker is looking at four tiled walls. Really, great, really great Britain. whataboutthat
  • Score: -3

2:01pm Wed 8 Jan 14

bogtrotter says...

whataboutthat wrote:
NIce to have a corrupt banking organsiation at the heart of our local employment/economy. Ditto Barclays in Poole, ad nauseum, HSBC in the High Street - cocaine/drug cartel money laundering, Co-Op with their 1.5billion squids 'black hole' in their accounts. RBS.Lloyds TSB - about the only 'clean' bank is Nationwide but then again they are a building soc still. Everything's fine and dandy and no banker is looking at four tiled walls. Really, great, really great Britain.
Would you rather it wasn't there so it left 1000's of locals unemployed? Banker-haters should really do some research before piping up. Do you think the corruption is occuring on the South Coast of the UK? Head up.
[quote][p][bold]whataboutthat[/bold] wrote: NIce to have a corrupt banking organsiation at the heart of our local employment/economy. Ditto Barclays in Poole, ad nauseum, HSBC in the High Street - cocaine/drug cartel money laundering, Co-Op with their 1.5billion squids 'black hole' in their accounts. RBS.Lloyds TSB - about the only 'clean' bank is Nationwide but then again they are a building soc still. Everything's fine and dandy and no banker is looking at four tiled walls. Really, great, really great Britain.[/p][/quote]Would you rather it wasn't there so it left 1000's of locals unemployed? Banker-haters should really do some research before piping up. Do you think the corruption is occuring on the South Coast of the UK? Head up. bogtrotter
  • Score: 1

4:27pm Wed 8 Jan 14

whataboutthat says...

bogtrotter wrote:
whataboutthat wrote:
NIce to have a corrupt banking organsiation at the heart of our local employment/economy. Ditto Barclays in Poole, ad nauseum, HSBC in the High Street - cocaine/drug cartel money laundering, Co-Op with their 1.5billion squids 'black hole' in their accounts. RBS.Lloyds TSB - about the only 'clean' bank is Nationwide but then again they are a building soc still. Everything's fine and dandy and no banker is looking at four tiled walls. Really, great, really great Britain.
Would you rather it wasn't there so it left 1000's of locals unemployed? Banker-haters should really do some research before piping up. Do you think the corruption is occuring on the South Coast of the UK? Head up.
All part of the chain bogtrotter...no chance any Madoff transactions went through Bournemouth? Poole nothing to do with Libor rates? Don't think you know much about banking. Nuff said.
[quote][p][bold]bogtrotter[/bold] wrote: [quote][p][bold]whataboutthat[/bold] wrote: NIce to have a corrupt banking organsiation at the heart of our local employment/economy. Ditto Barclays in Poole, ad nauseum, HSBC in the High Street - cocaine/drug cartel money laundering, Co-Op with their 1.5billion squids 'black hole' in their accounts. RBS.Lloyds TSB - about the only 'clean' bank is Nationwide but then again they are a building soc still. Everything's fine and dandy and no banker is looking at four tiled walls. Really, great, really great Britain.[/p][/quote]Would you rather it wasn't there so it left 1000's of locals unemployed? Banker-haters should really do some research before piping up. Do you think the corruption is occuring on the South Coast of the UK? Head up.[/p][/quote]All part of the chain bogtrotter...no chance any Madoff transactions went through Bournemouth? Poole nothing to do with Libor rates? Don't think you know much about banking. Nuff said. whataboutthat
  • Score: 1

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