- JPMorgan (NYSE:JPM) is reportedly close to agreeing a $2B settlement with authorities over allegations that it turned a blind eye to Bernard Madoff's Ponzi scheme.
- In a first for a major Wall Street bank, JPMorgan will be the subject of a deferred prosecution agreement in which authorities will file criminal charges that would be dismissed after a set period of time if the bank meets certain conditions.
- Authorities plan to use a large part of the fine to compensate Madoff's victims.
- The settlement will add to a series of agreements that JPMorgan has reached with authorities over its various misdeeds, including a $13B deal that the bank agreed over the sale of problematic mortgage bonds. (Previous)