Tue, May 31, 2016
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. Americas - Australian banks sending U.S. hedge funds broke, Ryan Puerto Rico ‘rescue’ bill could be windfall for hedge funds[more]

    Australian banks sending U.S. hedge funds broke From SMH.com.au: US hedge funds are not having the best of years. Profits are hard to find, they're underperforming and the punters are losing patience, withdrawing US$15 billion ($20.8 billion) in the March quarter. They're expected to wit

  2. Investing - Billionaire Wilbur Ross likes the look of Chinese bad loans, Hedge funds are still relevant in a diversified portfolio: 4 fundamental criteria for superior manager selection[more]

    Billionaire Wilbur Ross likes the look of Chinese bad loans From Bloomberg.com: U.S. billionaire Wilbur Ross said he’s considering investing in nonperforming loans in China, as Moody’s Investors Service said that the nation has the tools to prevent a financial crisis in the near term. I’

  3. Investing - Blackstone gives pricey Canadian energy and property thumbs down, One of the most concentrated hedge fund bets is getting crushed, Facebook is hedge funds' new tech darling,[more]

    Blackstone gives pricey Canadian energy and property thumbs down From Bloomberg.com: Canada’s energy assets are uneconomic and real-estate markets overvalued, making them less attractive for investment than in the U.S. and elsewhere, according to Tony James, president of Blackstone Group

  4. Study - Only 30% of institutional hedge fund portfolios beat the benchmark[more]

    Bailey McCann, Opalesque New York: A new study from CEM Benchmarking, an independent provider of cost and performance analysis for pension funds, shows that only 30 percent of institutional investors hedge fund portfolios beat the benchmark after fees. The study provides in depth analysis of real

  5. Opalesque Exclusive: $1bn hedge fund club grows to 668 managers, continues to dominate (Part One)[more]

    Komfie Manalo, Opalesque Asia: Despite an underwhelming 2015 and a slow start to 2016 in terms of performance, one group of managers that continues to dominate the assets of the hedge fund industry is the so called $1bn club – hedge fund managers with at least $1bn in assets under management (AU