JPMorgan Chase, the massive and uncontrollable bank-monster which just paid a $13 billion fine and is run by a CEO who is doing a great job, now reportedly finds itself mired in yet another massive legal scandal. They're consistent, let's give them that.
Ben Protess and Jessica Silver-Greenberg at the New York Times report that now that JPM has agreed to its eleven-figure settlement for fucked up mortgage security practices leading up to the housing crisis, it can deal with the next thing coming down the pike: a government investigation into whether the bank acted criminally by ignoring warning signs of Bernie Madoff's multibillion-dollar Ponzi scheme.
Reflecting the magnitude of the investigation, prosecutors and JPMorgan have held preliminary discussions about a so-called deferred prosecution agreement, people briefed on the inquiry said. Such an arrangement would suspend criminal charges against JPMorgan in exchange for a fine, certain other concessions and an acknowledgment that the bank will face charges if it fails to behave. Prosecutors may also require JPMorgan, which has repeatedly said that “all personnel acted in good faith” in the Madoff matter, to hire an independent monitor.
Jamie Dimon can do no wrong!