JPMorgan Chase is nearing settlements (click here) with federal authorities over its ties to Bernard L. Madoff, reaching tentative deals that would involve roughly $2 billion in penalties and a rare criminal action, Jessica Silver-Greenberg and Ben Protess report in DealBook. The government plans to use a sizable portion of the money to compensate Mr. Madoff’s victims, according to DealBook.
The settlements, coming together on the five-year anniversary of Mr. Madoff’s arrest, would fault JPMorgan for turning a blind eye to his huge Ponzi scheme, according to people briefed on the case who were not authorized to speak publicly. “A settlement with federal prosecutors in Manhattan, the people said, would include a so-called deferred-prosecution agreement and more than $1 billion in penalties to resolve the criminal case. The rest of the fines would be imposed by Washington regulators investigating broader gaps in the bank’s money-laundering safeguards,” Ms. Silver-Greenberg and Mr. Protess report....
