Friday, February 4, 2011

Did JP Morgan know about Madoff?

Why does this story not surprise me?

NEW YORK (CNNMoney) -- JPMorgan Chase executives suspected that Bernard Madoff's investment strategy was actually a Ponzi scheme years prior to its collapse, but did nothing to stop it, according to the court-appointed trustee trying to recove assets stolen by Madoff.

The claims come in a lawsuit filed by trustee Irving Picard against JPMorgan Chase. The suit, filed in a New York bankruptcy court in December, was unsealed Thursday.

The complaint seeks to recover nearly $1 billion in fees and profits and an additional $5.4 billion in damages stemming from the bank's long stint as Madoff's banker.

The complaint contains a redacted e-mail from a JPMorgan risk officer warning as early as June 2007 that Madoff was running a Ponzi scheme, and using the bank to hold his money.

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