JPMorgan nears $2 billion settlement in a case tied to Madoff: NYT

(Reuters) – JPMorgan Chase & Co is nearing a $2 billion settlement with federal authorities to resolve suspicions that the bank ignored signs of Bernard Madoff’s Ponzi scheme, the New York Times reported, citing people briefed on the case.

The bank’s civil and criminal settlements would also involve a deferred prosecution agreement, a criminal action that would suspend an indictment as long as the bank acknowledged the facts of the government’s case and changed its behavior, the NY Times said.

As per the deal, JPMorgan will pay more than $1 billion to the prosecutors in Manhattan and the remainder to the Office of the Comptroller of the Currency (OCC) and a unit of the Treasury Department investigating breakdowns in the bank’s safeguards against money laundering.

The government plans to use some of the payout for Madoff’s victims, the paper said. (http://link.reuters.com/sur75v)

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