JPMorgan Gained $907 Million from One Madoff Checking Account

[The Straight Story]

JPMorgan Gained $907 Million from One Madoff Checking Account

JPMorgan Chase was not one of the many victims of Bernard Madoff’s Ponzi scheme. On the contrary, the bank made a lot of money off Madoff, close to a billion dollars.

According to an analysis by Linus Wilson of the University of Louisiana at Lafayette, JPMorgan earned $907 million in pre-tax profits from the bank account Madoff had open from 1986 to 2008, when the scheme was exposed. Just before the financial crisis of that year unfolded, the account held as much as $5.5 billion.

The Securities and Exchange Commission referred to the account as “nothing more than a slush fund.”

In his paper, Wilson writes that the bank failed to investigate the huge flows in and out of the Madoff account, which should have triggered an internal investigation. It did, however, use funds in the account to invest in high-yield loans.

http://www.allgov.com/Controversies/ViewNews/JPMorgan_Gained_907_Million_Dollars_from_One_Madoff_Checking_Account_110303

[PA Democrat]

1. JP Morgan knew Madoff was running a Ponzi scheme

and did nothing to stop it because they could make money off of Madoff's crimes. That is what really makes me sick. This crooks are all in collusion to steal as much as they can.

http://money.cnn.com/2011/02/03/news/companies/madoff_jpm/index.htm

[loudsue]

2. "Crooks" and "collusion" are the key terms here, and the Obama Justice Dept. has done NOTHING

to jail these criminals. If it was me or you who had done this, we'd be in jail. Not members of the wealthy elite... they skate.

On edit: Neither, of course, did the Bush Justice Dept. do anything to the banks. Bernie Madoff, of course, hurt some of Bush's contributors, so naturally he was going to punish Madoff, but not the banks who were in collusion, or who profited.

[lonestarnot]

3. Despicable!