Reuters - Video

EDITION: U.S. | U.K. | IN

Breakingviews

Breakingviews: Madoff strikes again

Tuesday, January 07, 2014 - 03:33

Jan 7 - JPMorgan's criminal settlement for turning a blind eye to its Ponzi scheming client is unique in the modern annals of bad banking behavior. Breakingviews editors explain why.

▲ Hide Transcript

View Transcript

The new year banking is kicking off just where it left off the old year. We've got JPMorgan with a big settlement criminal over Bernie Madoff one point seven billion dollars this one's been in the works for awhile and other works like all of these. Of course for -- us and we just and that was just announced today. Let's step back JPMorgan of course was Bernard Madoff Ponzi schemer is -- -- -- it put its money. -- to Canada's money. The feds are saying look JPMorgan you should have known this guy it was a fraud. And we think that you ignored -- -- turn a blind side it was behavior so we think that's. A violation what's called the bank secrecy act which were. Requires banks US banks congress -- just think there's activity there's extra component of the -- which is this deferred prosecution deferred prosecution agreement made it basically if you guys pay the one point seven billion dollars and and reform your money laundering. But the practices or anti money laundering practices and surveillance that we won't bring criminal charges then we'll just settle this thing and make it go away if you. Don't do what we want to do then there could be for the first time really criminal. Charge -- industry. Now this is unlike all these other bank settlements that we've seen which -- -- -- kind of evolved pretty much everyone our -- banks or whether it's Libor or. Mortgage securities this one is particular to JP more yes setting aside and you can look other banks and -- all and people have to shake up that money anti money laundering and activities from. It's small banks to big backs -- -- static shot of going -- -- the company has gotten gold rimmed it pretty bored about what that US is gonna take. But yeah I mean this is this is one client who lived and he you'll. To fight -- JPMorgan is an amalgam of many New York based. What does it say if while the biggest banks in the country even if fools that the most recent manages manages to get this account and for years doesn't -- thing. It was not like OK let's let's let's just turn a blind -- to may be someone's funding some weapons for Iran to take six months this is 1520 years with us. -- -- that's where it's Rudy I guess the point is that there's been safety in numbers some of these banks -- some of the bank CEOs the sale ever almost kind of go over signing a joint. Yes settlement agreement maybe even in some cases -- what I mean. Jimmy Carter has obviously been held out quite a bit you know so when it -- thirteen billion dollar settlement how many layers of paint can be put on the body at that corner that's that's -- The government decided backed himself into a corner pain patient because -- people's thing but how thick -- those bulls now with pain it's a tricky one a look at I mean this yeah he was he was in charge spent three years buys from the Ponzi schemes exposed. -- and everyone else missed as well. And you can talk taveras capable street in options trade level site. We are pretty shall he was a Ponzi scheme of from the start this but -- and I've spent a few people. Before we came Essex district fishy about this is gonna know that was -- trichet said it -- is it chicken little and the bank. Could not Fennessy his Jamie Dimon -- claiming for years fortress balance sheet mistress management on the street and now we've got. A problem into a woman to be the safest heirs of the bank. Transaction management few clients but he made off. And of course than on the way out in the Treasury Department and this just looks like really really bad stuff any banker frank very little bit. All right we will leave it there we'll keep an -- what happens at JPMorgan and with Jamie Dimon will be back with more breaking views.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Breakingviews: Madoff strikes again

Tuesday, January 07, 2014 - 03:33

Top News »

Most Popular »

Investing 201 »

Bond investors brace for the end of Fed stimulus Bond investors brace for the end of Fed...

Fri, Oct 10, 2014 - (4:03)

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

Money Clip »

Will Apple Pay transform mobile payments? Will Apple Pay transform mobile payments?

Thu, Oct 16, 2014 - (2:45)

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Dance of the northern lights Dance of the northern lights

Mon, Oct 20, 2014 - (1:08)

Images of September Images of September

Wed, Oct 01, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)