JPMorgan to pay $2B in Madoff Case

JPMorgan Chase is close to a settlement agreement with federal prosecutors expected to total roughly $2 billion to resolve claims that the bank turned “a blind eye” to Bernard Madoff’s massive Ponzi scheme, according to The New York Times.

Much of the money will go to compensate Madoff’s victims, while the remaining fines would reflect fines imposed by regulators who have scrutinized JPMorgan’s anti-money laundering defense.

“The settlements, which are coming together on the anniversary of Mr. Madoff’s arrest at his Manhattan penthouse five years ago on Wednesday, would fault the bank for turning a blind eye to his huge Ponzi scheme,” the NYT’s Jessica Silver-Greenberg and Ben Protess write.

They cite people briefed on the case.

The resolution would come on the heels of JPMorgan’s massive $13 billion settlement with the government over the bank’s handling of mortgages and troubled securities ahead of the 2008 financial crisis.

Check out the complete Times story here.