seconds: Million 0.0328 years; Billion 31.7 years; Trillion 31,710 years


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Sunday, February 6, 2011

Bankers, at least JP Morgan, were aware of Madoff’s Ponzi Scheme

JP Morgan Was "Thoroughly Complicit" In Madoff Ponzi Scheme, Says Trustee

The trustee working on behalf of the victims of Bernie Madoff's huge ponzi scheme has sued JP Morgan for a startling $6.4 billion.

The bank was "thoroughly complicit" in the fraud, says the trustee, Irving Picard, and he cites some emails from JP Morgan executives to prove it.

In one, a JP Morgan risk officer said the following:

For whatever it's worth, I am sitting at lunch with (a bank employee) who just told me that there is a well-known cloud over the head of Madoff and that his returns are speculated to be part of a (P)onzi scheme.

Emails like that, presumably, will force JP Morgan into a painfully large settlement, regardless of the context in which the remarks were made.

So was JP Morgan "complicit" in Madoff's fraud?

JP Morgan says the suit is baseless, and the evidence Picard has published to date does not suggest that JP Morgan knew Madoff was running a Ponzi scheme.

It certainly begs the question, however, whether JP Morgan did enough to satisfy itself that Madoff was NOT running a Ponzi scheme.  And that's likely where the legal battle will take place.

2 comments:

  1. of course jpm will deny any wrong doing or prior knowledge in madoff 's scheme. but we are starting more and more evidence to the contrary. let's face it there was to much easy money for them to deny. hopefully there will be criminal indictments coming, instead of a slap on the wrist fine.

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  2. Do you feel your investments are safe? Do you think your account statement reflects the balance in your account?
    Do you know that while Irving Picard is questioning and accusing JPMC and the Wilpons, that he’s also pursing innocent investors?

    Do you know that there’s no guarantee that your broker is not a crook?

    Read how Congress is helping and how you can support the safety of your own investments.

    http://t.co/MbmIGy7

    ReplyDelete