JPMorgan to pay $1.7B to settle Madoff case

Jan 07, 2014, 10:37 AM EST
People walk by JP Morgan Chase & Company headquarters in New York, August 14, 2013.
AFP/Getty Images

 JPMorgan Chase will pay a $1.7 billion penalty to settle charges by U.S. federal authorities that the bank failed to report suspicious activity relating to Bernard Madoff's Ponzi scheme. The bank had violated laws requiring that it monitor customer activity for money laundering in the Madoff case, authorities said on Tuesday. The deal includes a two-year deferred prosecution agreement and settles outstanding probes by two bank regulators into failures in JPMorgan's anti-money laundering policies. The bank also agreed to improve its controls.