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In Madoff Settlement, a History of Missed Cues and Miscommunications
By Colby Adams
printReading the documentation accompanying JPMorgan Chase's record $2.05 billion settlement for failing to report Bernie Madoff's suspicious transactions, one might reasonably ask how a fire with so much smoke could have burned for so long. Madoff's $65 billion Ponzi scheme, which collapsed in 2008 and resulted in a 150-year prison sentence for the once lauded hedge fund manager, relied on the financial institution's accounts as early as 1986, according to a statement of facts endorsed by the bank as part of its deferred prosecution agreement with the U.S. Justice Department. But neither JPMorgan nor U.S. regulators identified problems with Madoff's...
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