JPMorgan Settles With Federal Authorities in Madoff Case - NYTimes.com

One advantage of this regulatory enforcement action is that the defrauded investors will not have to pay counsel fees.  The deadly sin of greed led Chase to ignore the obvious signs of a massive fraud.  - GWC
JPMorgan Settles With Federal Authorities in Madoff Case - NYTimes.com:
by Ben Protess and Jessica Silver-Greenberg

On Tuesday, five years after [Bernard]. Madoff’s arrest set off a panic on Wall Street and in Washington, Mr. Madoff’s primary bank received a punishment of its own.
Federal prosecutors in Manhattan imposed a $1.7 billion penalty on JPMorgan for two felony violations of the Bank Secrecy Act, a record payout under that 1970 law, which requires banks to alert authorities to suspicious activity. The prosecutors, essentially accusing the nation’s biggest bank of turning a blind eye to Mr. Madoff’s fraud, will require JPMorgan to pay the $1.7 billion to his victims.
The bank cannot write off the sum as a tax deduction. And including the Madoff settlement, JPMorgan will have doled out some $20 billion to resolve government investigations over the last 12 months.
Later on Tuesday, federal regulators are expected to announce their own rebuke of the bank in a civil case. The Office of the Comptroller of the Currency, according to people briefed on the matter, struck a $350 million settlement with the bank over the Madoff case and broader breakdowns in safeguards against anti-money laundering.

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