

JPMorgan Settles With Federal Authorities in Madoff Case - bonemachine
http://dealbook.nytimes.com/2014/01/07/jpmorgan-settles-with-federal-authorities-in-madoff-case

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bonemachine
Quoting from them article:

 _JPMorgan, having served as Mr. Madoff’s primary bank for more than two
decades, had a unique window into his scheme. In a document outlining the
bank’s wrongdoing, prosecutors argued that “the Madoff Ponzi scheme was
conducted almost exclusively through” various accounts “held at JPMorgan.”_

 _On two occasions, in 2007 and 2008, JPMorgan’s own computer system raised
red flags about Mr. Madoff, according to prosecutors. But both times,
prosecutors say, JPMorgan employees “closed the alerts.”_

 _“JP Morgan failed to carry out its legal obligations while Bernard Madoff
built his massive house of cards,” George Venizelos, a senior F.B.I. official,
said in a statement._

 _The F.B.I. and prosecutors traced the problem to JPMorgan “willfully”
failing to create sufficient controls against money laundering. “There was no
meaningful effort by the Bank to examine or investigate the Madoff Securities
banking relationship,” prosecutors said._

Any current or former JPM employees out there? Your comments will be
especially, especially welcome.

