JPMorgan Chase (JPM) agreed yesterday to settle the $17.3 billion Madoff case, and the bank will now pay $1.7 billion to settle the reporting violations. JPMorgan also will pay $350 million to settle a related case by the Office of the Comptroller of the Currency and $543 million to resolve US Bankruptcy Court actions by the trustee seeking Madoff assets on behalf of burned investors.
The $2.6 billion settlement involves the largest ever payment made by a bank in a case involving money laundering violations.
The news caused the stock price to drop 1.15% to $58.32.
This deal comes as part of the larger probe by federal regulators in an attempt to hold big banks accountable for ignoring red flags related to fraudulent activities. HSBC Holdings (HSBC) faced similar charges in 2012, which saw it pay $1.9 billion for failing to report suspicious money transfers through its branches made by Libyan, Iranian, and Mexican drug cartels.
Read More : JPM
No comments:
Post a Comment