Mon, Sep 25, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

JP Morgan Chase to pay out $2.6bn on Madoff case

Wednesday, January 08, 2014

Bailey McCann, Opalesque New York:

Bernie Madoff cost investors billions in his Ponzi scheme, and now his bank - JP Morgan Chase will also have to pay up for maintaining a client relationship with him. Following the conclusion of a trial held today in New York, JP Morgan will pay $2.6bn in relief to jilted Madoff investors and the government. This latest round of fines is in addition to the $13bn in fines the bank is paying out for mortgage misconduct and others totaling to almost $20bn. The bank has been socking away cash to cover both the payouts and legal expenses, although some critics say the judgements don't go far enough to keep banks from conducting these activities.

The complaint around the Madoff case focused on the client relationship the bank had with the convicted Ponzi schemer. Prosecutors said that the failure of bank executives to report what they admitted to be suspicious behavior to authorities constituted neglect.

"The bank connected the dots when it mattered to its own profit but was not so diligent when it came to its legal obligations," said New York Prosecutor Preet Bharara at a press conference.

Still, critics of the case note that no one from the bank has faced personal charges concerning this or any of the other cases settled by JP Morgan. They say that the lack of charges, tells bankers in effect that they can......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. iCapital Network enters deal to acquire innovative U.S. private equity access fund platform from Deutsche Bank[more]

    Komfie Manalo, Opalesque Asia: Financial technology platform iCapital Network has entered into a definitive purchase agreement to acquire the US Private Equi

  2. Asia - Hedge funds used to love shorting China. Now, not so much, Fledgling China FoFs require careful use: NCSSF, Amac, Japanese banks turn to PE, hedge funds for returns[more]

    Hedge funds used to love shorting China. Now, not so much From Bloomberg.com: A sharp devaluation. A credit crisis. And an economic hard landing. That's what some of the biggest names in the hedge fund industry were predicting for China after the nation's stocks and currency tumbled in 2

  3. Launches - Orchard launches new credit platform, ETN based on hedge fund to launch on the LSE[more]

    Orchard launches new credit platform Orchard Platform has rolled out Deals as a part of its new platform launch. With the addition of Deals to their suite of technology solutions for loan originators and institutional investors, Orchard Platform takes the next step in their evolution. De

  4. Neuberger Berman closes $1.1bn Credit Opportunities Fund[more]

    Neuberger Berman, a private, independent, employee-owned investment manager, announced that NB Private Equity Credit Opportunities Fund LP closed on $1.1 billion of limited partner commitments. The Fund seeks to invest in the secured and unsecured debt of private equity-backed companies, primarily i

  5. Capital Dynamics launches mid-market private credit business[more]

    Capital Dynamics, a global private asset manager, has launched a dedicated Private Credit Asset Management business. Experienced industry executives Jens Ernberg and Thomas Hall have joined Capital Dynamics to co-lead the company's new private credit initiative. They are based in Capital Dynamics' N