JPMorgan to pay over $2 billion to settle Madoff case

Workers are reflected in the windows of the Canary Wharf offices of JP Morgan in LondonBy David Henry and Emily Flitter NEW YORK (Reuters) – JPMorgan Chase & Co will pay more than $ 2 billion of penalties to settle charges by U.S. federal authorities that it failed to report suspicious activity involving Bernard Madoff's Ponzi scheme. As part of the deal, JPMorgan is admitting to a laundry list of failures to explore red flags it found. This led to the government's conclusion that it violated laws requiring it to monitor customer activity for money laundering during its two-decade relationship with Madoff, authorities said on Tuesday. Among the failures included in a detailed statement of facts released by U.S. prosecutors are instances dating back to the early 1990s in which JPMorgan employees acknowledged to each other that Madoff was engaging in improper behavior but did not report it to authorities or end the banking relationship.

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