9-Jan-14
JP Morgan Chase has nearly $ 2 billion settlement with the federal authorities to resolve doubts , the bank ignored signs of Bernard Madoff 's Ponzi scheme , the New York Times reported , citing the people briefed on the situation .
Civil and criminal settlement of the bank will also involve deferred prosecution agreement , the prosecution will be suspended as long as the bank admitted facts of the case the government to change its behavior to institute criminal proceedings , the New York Times said.
JP Morgan Chase (JPM) will pay more than $ 1 billion in Manhattan , the rest of the Comptroller of the Currency Office , Ministry of Finance and combat money-laundering investigation unit at fault prosecutors safeguards banks , according to the details of the transaction.
The Government plans to use some of the expenses for Madoff victims , the newspaper said.
Madoff was convicted of defrauding thousands of investors and is serving 150 years in prison in 2009 .
JP Morgan has been accused of ignoring warning signs of Madoff 's business is a scam, often to win more fees and commissions because the service they provide.
JPMorgan spokesman Joseph Evangelisti rejected by the New York Times , Reuters reports Contact commenting .
Once you reach the Madoff settlement , the bank will pay about 200 billion to resolve government investigations in the past 12 months, the newspaper said.
A government official told Reuters reporters last month , the U.S. Office of the Treasury Inspector General is investigating whether JPMorgan interfere with OCC 's attempts to probe the bank's relationship with Madoff .
Madoff also separately to the U.S. authorities , JP Morgan Chase Bank that he had used in his decades-long investment scam - was trying to get information about their relationship to stop OCC.
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