You may have heard the news that JP Morgan settled with prosecutors (mostly Manhattan US District Attorney’s office) for over $2.0 billion in regards to its role as banker to Bernie Madoff. After paying this settlement, JPMorgan will have paid out roughly $20 billion to resolve government investigations over the last 12 months!
The smoking gun for the bank was an email from an executive stating that the bank suspected Madoff was running a Ponzi scheme about a year or so before the Madoff Ponzi scheme collapsed. From what we have read most of the money for this settlement will go to victims. With the amount paid from this settlement it is believed that Madoff victims will receive about two thirds of their investment back! That is considered a huge win since usually there is only pennies recovered.
Leave it to lawyers to find the hidden funds!
http://www.ft.com/cms/s/0/94c2fb60-634f-11e3-886f-00144feabdc0.html#axzz2pcZJ8w5J
