JPMorgan Chase 'complicit' in Madoff fraud: Lawsuit

JPMorgan Chase 'complicit' in Madoff fraud: Lawsuit

economic times.indiatimes.com

Global financial services firm JPMorgan Chase & Co was "at the very centre" of and "complicit" in the USD 50 billion dollar Ponzi scheme masterminded by disgraced investment manager Bernard Madoff , a lawsuit filed in a US bankruptcy court has alleged.

The USD 6.4 billion lawsuit filed by Irving Picard , a court-appointed trustee seeking to recover money for former Madoff clients, alleges that despite being aware of the fraud, the US bank continued to do business with the scamster in the hope of protecting the bank's investments.

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Slowly but surely this trustee Picard is moving to recover money for the victims of the Madoff scandal..

In this case the suit hopes to recover $5.4B in damages above the $1B profits and fees that JPMorgan is alleged to have made of the scam.

It appears to be another case of a bank turning a blind eye to signals that were known by the bank as far back as 2006. The blind eye may have been to give the bank time to pull it's own money out of the Madoff associated funds as the documents mention that the bank was able to pull $240M prior to the fallout.



economic times.indiatimes.com
(visit the link for the full news article)

It is nice to see, and this will be another one to follow closely.

But here is how it seems to always go down:

J.P. Morgan has already calculated the cost of settlement using their "profit potential vs. risk of indictment" formula, and come up with an acceptable percentage of quarterly earnings. This amount has probably been set aside since the beginning, and now that it has accrued to it's predicted earnings ratio, it can now be used to settle out of court, making sure to admit no wrong doing.
This is all part of their benefits of "financing both political parties handsomely" portfolio.

Sorry, but every time I get my hopes up that somehow justice is applicable to multi-billionaires in the same way as you and me, the reality that the exact opposite is true gets confirmed.

the Billmeister

reply to post by Billmeister


A settlement is one of the first things that came to mind for me as well...

reply to post by Billmeister


I used to work for a guy managing his stores that were Verizon premium Retailers. Verizon gives return cusstomers anywhere from $35-$100 torwards the purchase of a new phone. He would tell my employees to not tell them about it but still bill Verizon essentially siezing their instant rebate. I always would tell my employees DO NOT DO IT. He would get mad and snarl his business mantra it is better to ask for forgiveness than permission. Greed plain and simple.

As each day passes, this Old World Order of thug banksters and corrupt pollies will ALL be taken DOWN!

Rejoice!

reply to post by sirjunlegun


Ever bought a new car from a dealer?