Decades-long ties to Madoff cost JPMorgan $2.6 billion

Comments (26)

so in escense the top dogs at the bank are being allowed to skate and getting paid top dollar to do it again.

Jan 07, 2014 10:20am EST  --  Report as abuse

so in escense the top dogs at the bank are being allowed to skate and getting paid top dollar to do it again.

Jan 07, 2014 10:20am EST  --  Report as abuse

so in escense the top dogs at the bank are being allowed to skate and getting paid top dollar to do it again.

Jan 07, 2014 10:20am EST  --  Report as abuse
tmc wrote:

Shouldn’t someone go to jail for money laundering?

Jan 07, 2014 10:24am EST  --  Report as abuse
THeRmoNukE wrote:

And who is joining Madoff in jail?

TOTALLY UNACCEPTABLE!

Jan 07, 2014 10:26am EST  --  Report as abuse
Des3Maisons wrote:

Per yesterday’s national edition of the New York Times: “All told, after reaching the Madoff settlements with federal prosecutors in Manhattan and regulators in Washington, the bank will have paid some $20 billion to resolve government investigations over the last twelve months.”

And nobody goes to jail – but then again, why should they since these sleazy banksters own our government along with the rest of Corporate America.

Jan 07, 2014 10:26am EST  --  Report as abuse
CMEBARK wrote:

So much for self policing by banks.

Jan 07, 2014 10:38am EST  --  Report as abuse
Overcast451 wrote:

JPMorgan is becoming synonymous with fraud.

Perhaps if the law actually gave Dimon or any CEO REAL jail time for fraud – it would stop this.

But I suspect too many people in government are making too much money off of this same criminal activity to stop these issues.

Jan 07, 2014 10:53am EST  --  Report as abuse
Swisswatch wrote:

“Companies are people” – why is it that no one is going to prison?

“agreed not to apply to a tax deduction” – This implies that this has been successfully done by other corporations. That is sickening.

Why is it that a criminal such as J.P. Morgan (see “companies”…) can negotiate and agree to the penalties. Hey, this is supposed to be a punishment, not a business deal.

Jan 07, 2014 11:07am EST  --  Report as abuse
AlkalineState wrote:

Criminal forfeiture means criminal company.

Jan 07, 2014 11:13am EST  --  Report as abuse
gregbrew56 wrote:

How much of this $1.7B went to the victims?

Zilch!

Pathetic.

Jan 07, 2014 11:28am EST  --  Report as abuse
THeRmoNukE wrote:

$80T in “totally legit not fraudulant at all please trust us” derivitives…

Jan 07, 2014 11:40am EST  --  Report as abuse
smit1610 wrote:

Just another “shake down” by the govt.

Jan 07, 2014 11:50am EST  --  Report as abuse
expat75 wrote:

What about putting those at Goldman Sachs, who were responsible for bringing down the American International Group – AIG – with their manipulation of the mortgage scam, in the next cells with Madoff. The directors of the bankrupt Countrywide, now absorbed by Bank of America, should also join them. Instead, they have set up a new company, bought foreclosed property at firesale prices, and are sitting very pretty.The bigger the corruption the easier to get away with it.

Jan 07, 2014 11:55am EST  --  Report as abuse
AlkalineState wrote:

Wall Street can police itself :)

Jan 07, 2014 11:59am EST  --  Report as abuse
AlkalineState wrote:

“Didn’t it seem suspicious that for 12 years, he was transferring the same pot of money up to 1,000 times a day, into his different clients’ accounts…. just long enough to generate a balance statement in each?”

“No, it’s pretty normal here at Jippy Morgan. Our whole thing is launder and float.”

Jan 07, 2014 12:27pm EST  --  Report as abuse
UScitizentoo wrote:

Current banking law in America – F everbody you can for as much as you can for as long as you can then cut a deal with the justice department for 20% of your illegal profit and everybody retires millionaires.
Enjoying the control of your life by the pure filth in the banking industry and a fascist congress?

Jan 07, 2014 12:28pm EST  --  Report as abuse

I’ve said this before here and I’ll say it again. Around 2003 an elderly relative approached me for advise. A friend of his ran an investment club and had invited him to join. The club was invested almost entirely with Madoff Investments.

Looking at the returns I advised against the investment. My greedy relative ignored my advise. A couple of years later he died. His widow wished to raise some cash. “What should I sell?” she asked. In spite of it’s good returns I advised her to sell the Madoff. When she asked “Why?” I simply replied that there had to be something fishy going on. It was obvious to anyone even casually familiar with investing. How could one firm be so smart as to consistently beat the averages, year in, year out?

The widow wasn’t so greedy and sold her stake. A couple of years later….well we all know how it ended.

So how is it that the professional bankers at JPM couldn’t see what little old me and many others could see? It’s simple. They did see. What we have here is $2 billion dollars worth of CYA.

Jan 07, 2014 12:40pm EST  --  Report as abuse
Green451 wrote:

Odd that the regulators that OK’ed everything Madoff did, never make the news. JPM suspected. Those government agents did not. Fishy

Jan 07, 2014 1:09pm EST  --  Report as abuse
AlkalineState wrote:

Green, regulators are not there to ‘ok’ every transaction. They catch bad guys (once they do bad things) and make rules. They caught Madoff in the end.

If you eventually get caught drunk driving, do you say that the police are complicit because they ‘ok’d’ it all the times you did not get caught? No. Unless you just like not making sense.

Time to stop blaming the government for Wall Street’s recklessness.

Jan 07, 2014 4:06pm EST  --  Report as abuse
Mandingo wrote:

Interesting that this little tap on JP’s hand lowers the stock 1% – it will bounce back tomorrow.

I always suspected that these so called fines that this and that outfit pays are backdoor payoffs that cost the company nothing. Why? Well they are tax write off’s or deferred credits etc. That this judgement goes out of its way to explicitly state that is not the case in this case is telling. All the other “fines” are just paid back to the institution in tax credits and what-not.

The reason white collar and particularly banking fraud and crime are not prosecuted is that the politicians are bribed (ok its called fund raising) by money to cover every possible angle related to banking and corporate fraud. So covered by any and every possible law or prosecution, they always slip the net and even if the world economy goes to its knees – not one banker or fraudster is charged.

Jan 07, 2014 4:24pm EST  --  Report as abuse
Greenspan2 wrote:

There have been countless scams similar to Madoff’s but without the high profile and political and personal connections that many of the Madoff victims have. Once again, the US has the best judicial system that money can buy. Have the underlining lack of transparency and fiduciary responsiblity associated with scams been remedied? Don’t think so.

Jan 07, 2014 5:05pm EST  --  Report as abuse
JakobStagg wrote:

What discouragement is there in allowing them to pay fines that do not remunerate the victims? The fine comes from the customers and the crooks remain free. Do we wonder why it is all down hill?

Jan 07, 2014 6:42pm EST  --  Report as abuse
OnAnIsland wrote:

I thought the charge was money laundering. This usually results in seizure of all assets and imprisonment of the perpetrators. Whats good for the local drug dealer is good for the rich guys too.

Jan 07, 2014 6:44pm EST  --  Report as abuse
Dr.Mysterious wrote:

The fact that the executives that promulgated the fraud, the Justice department that allowed them to skate and defraud the stock and bond holders of Chase are not sharing cells in some international prison is the big news… Please notice it is by the way not the fault of the Papitalist Pigs but the Socialist Pigs.

Jan 07, 2014 7:30pm EST  --  Report as abuse
SeanPaz wrote:

How much did M-S make during the years Madoff used them and how much of that then earned massive increase due to further investments? That is, what is the NET cost of the fines after all that. Did they lose money or gain money? Is the fine enough to cause them enough pain to avoid such failings in the future? Did they also reimburse their investors for the losses these overpaid “managers” lost? I doubt it. I think they probably gained net of this fine and certainly the partners got tons of bonuses to fund their Mac mansions and lavish life styles. WAKE UP AMERICA.

Jan 08, 2014 4:59am EST  --  Report as abuse
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