J.P, Morgan Chase will pay $2 billion in civil and criminal settlements later this week in for its role in the Madoff fraud case.
The settlement arises from suspicions that J.P. Morgan Chase ignored signs of Bernie Madoff's criminal activity. The bank was Madoff's primary bank for more than two decades, according to The New York Times, which broke the story.
The pending settlement brings J.P. Morgan Chase's tab for settling government investigations to $20 billion in the past 12 months. The most recent settlement will be split among Manhattan prosecutors, the Office of the Comptroller of the Currency, the Treasury Department and victims of the Madoff scam.
Federal authorities probably won't single out any one person at the bank. But federal regulations require the bank to report shady or suspicious activity at the bank. A recent civil suit against J.P. Morgan chase revealed several e-mails that raised red flags against Madoff, including a 2008 memo made shortly before his arrest that Madoff could be part of a massive Ponzi scheme.
Madoff pled guilty in March 2009 to securities fraud, money laundering and wire fraud, among other charges.