JP Morgan To Pay $2 Billion Settlement In Madoff Case

Published January 6, 2014 at 12:35 PM CST

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The headquarters of JP Morgan Chase on Park Avenue December 12, 2013 in New York. JP Morgan Chase and federal authorities are close to a USD $2 billion settlement over the bank's ties to financier Bernard L. Madooff that involve penalties and deffered criminal prosecution. (Stan Honda/AFP/Getty Images)

JP Morgan Chase is expected to reach a deal with federal authorities this week to pay about $2 billion in civil and criminal penalties to the government for its ties to Bernie Madoff.

The bank is suspected of ignoring signs of Madoff’s criminal financial scheme in order to win more commissions on services it provided.

With this payout, JP Morgan will have paid $20 billion to the government in the past year to resolve investigations.

The government reportedly plans to give some of the $2 billion settlement to investors affected by Madoff’s Ponzi scheme.

Guest

Cardiff Garcia, reporter for the Financial Times blog FT Alphaville. He tweets @CardiffGarcia.