JPMorgan, authorities close to $2B deal over Madoff

|About: JPMorgan Chase & Co. (JPM)|By:, SA News Editor

JPMorgan (JPM) reportedly hopes to reach an agreement with federal authorities this week to pay $2B to settle allegations that it turned a blind eye to Bernard Madoff's Ponzi scheme.

The deal would take the bank's payouts over the past 12 months for its various sins to $20B.

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.

The bank is expected to be cited for a criminal violation of the Bank Secrecy Act, under which banks have to keep an eye out for money laundering and report suspicious activity. However, JPMorgan won't have to plead guilty to such a breach, as it could jeopardize the firm's charter as a national bank.