JPMorgan Chase to Pay $2 Billion for Failing to File Madoff SARs

By Colby Adams, Brian Monroe and Brian Orsak

JPMorgan Chase will pay $2.05 billion for failing to share its suspicions that the performance of Bernard Madoff's hedge fund was too good to be true, prosecutors and the bank disclosed Tuesday. That concern, expressed by the bank in an October 2008 suspicious transaction report filed to the U.K.'s Serious Organised Crime Agency, was not passed along to the institution's U.S.-based anti-money laundering (AML) department, the Southern District of New York said in a $1.7 billion deferred prosecution agreement that accompanied an additional $893 million in regulatory fines and a civil settlement. Nor did personnel in JPMorgan's private banking division...