OCC investigating JPMorgan over Madoff scandal


It's amazing how the Bernard Madoff scandal took on a life of its own--one that apparently is going strong.

It's not surprising, however, that the trustees are taking years to wind down affairs. That's fairly common. But it is rather odd that Bernard Madoff continues to make news even from prison, from the many jailhouse interviews to his just recently publicized letter excoriating the evils of dark pools among other things.

To write yet another chapter in this saga, the Office of the Comptroller of the Currency apparently has an investigation underway, one that had previously kept under wraps. It was publicized last week when the Treasury Department's Inspector General ordered JPMorgan to turn over documents. He gave the bank a January 11 deadline to cooperate with the probe or risk sanctions for impeding the agency's oversight, according to Bloomberg.

JPMorgan had argued that the information is protected by attorney-client privilege. Trustee Irving Picard, tasked with recovering money for victims, has argued in the past that JPMorgan holds documents that shed light on the fraud. JPMorgan was one of Madoff's primary banks. Picard sued the bank in 2010, but the suit was later dismissed.

For more:
- here's the article

Related articles:
OCC takes aim at Bank of America, JPMorgan

Filed Under