Stan Honda, AFP/Getty Images
JPMorgan Chase is nearing a $2 billion settlement with federal authorities to resolve suspicions that the bank ignored signs of Bernard Madoff's Ponzi scheme, The New York Times reported, citing people briefed on the case.

The bank's civil and criminal settlements would also involve a deferred prosecution agreement, a criminal action that would suspend an indictment as long as the bank acknowledged the facts of the government's case and changed its behavior, the Times said.

JPMorgan (JPM) will pay more than $1 billion to the prosecutors in Manhattan and the remainder to the Office of the Comptroller of the Currency and a unit of the Treasury Department investigating breakdowns in the bank's safeguards against money laundering, according to details of the deal.

The government plans to use some of the payout for Madoff's victims, the newspaper said.

Madoff was convicted in 2009 of defrauding thousands of investors and is serving a 150-year prison sentence.
JPMorgan has been accused of ignoring warning signs that Madoff's business was a fraud, often to win more fees and commissions for services they provided.

JPMorgan spokesman Joseph Evangelisti declined to comment on the New York Times report when contacted by Reuters.

Once reaching the Madoff settlements, the bank will have paid some $20 billion to resolve government investigations over the last 12 months, the newspaper said.

A government official told Reuters last month that the U.S. Treasury Department's Office of the Inspector General was examining whether JPMorgan interfered with the OCC's attempts to probe the bank's relationship with Madoff.

Madoff had also separately told U.S. authorities that JPMorgan -- the bank he had used during his decades-long investment scam -- had tried to stop the OCC from getting information about their relationship.

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The banks are getting the money to pay the fines from the interest they arent paying the depositors on accounts. So the public is really paying the fines for the banks. People, stop doing business with these banks.
The CEO\'s are still getting their large bonuses and salaries. They aren\'t being hurt one bit.

January 06 2014 at 11:38 PM Report abuse rate up rate down Reply

It\'s amazing that all the money doesn\'t go to the victims of the financial fraud. The government is not the victim. They are supposed to be protecting the victims I.E. the citizens

January 06 2014 at 4:39 PM Report abuse +1 rate up rate down Reply

jamie says that is "chump change", he will make that back in 1st Q....

January 06 2014 at 4:10 PM Report abuse +1 rate up rate down Reply

If this is true that only "some of the money" will go to Madoff victims I think that the public should be made aware as to where the rest of the money goes, and why? Its time that, not just the banks, but the regulatory agencies as well be held accountable for moneys received. While 2 billions dollars is a large sum of money, Chase walks away without any admission of guilt. Who pays a $2 billion fine without being guilty of something!

January 06 2014 at 2:47 PM Report abuse +1 rate up rate down Reply

how is there not outrage that the victims are not getting most of the money .. I real reporter would uncover that fact and publish it .. thats the real story here

January 06 2014 at 2:44 PM Report abuse +1 rate up rate down Reply

So...that's it?? Really......

January 06 2014 at 2:09 PM Report abuse rate up rate down Reply

Interesting indeed as holder and the feds have fined banks and businesses over two trill dollars in the last six years alone doing the exact same thing as madoff did....Extrortion...Just another form of \"extortion\" and guess who pays back the banks all you genuises should be interested to know who really picks up the bill here is \"YOU DO\"...

January 06 2014 at 1:49 PM Report abuse +1 rate up rate down Reply

Sounds like another case of Afluenza to me.

January 06 2014 at 12:47 PM Report abuse +1 rate up rate down Reply

Cool! As usual the government and the lawyers take all the money from the settlement!

January 06 2014 at 12:28 PM Report abuse +2 rate up rate down Reply