Just weeks after announcing a $13 billion settlement over its involvement in mortgage security shenanigans, JPMorgan Chase (JPM) is apparently set to pay $2 billion in penalties over its involvement with Bernie Madoff. According to the New York Times and other sources, the mega-bank is being faulted for “turning a blind eye” to Madoff’s gigantic Ponzi scheme.
According to the Times, “The agreement to deferred prosecution would also list the bank’s criminal violations in a court filing but stop short of an indictment as long as JPMorgan pays the penalties and acknowledges the facts of the government’s case. In the negotiations, the prosecutors discussed the idea of extracting a guilty plea from JPMorgan, the people said, but ultimately chose the steep fine and deferred-prosecution agreement, which could come by the end of the year.”
In other words, rather than going through a lengthy and expensive trial they may not win, regulators are willing to accept a simple apology and a