NEW YORK (TheStreet) -- J.P. Morgan Chase (JPM) has agreed to pay federal officials $1.7 billion to settle criminal charges that the bank ignored warning signs of the Bernie Madoff ponzi scheme, which amounted to $65 billion.
TheStreet's Brittany Umar added that it's the largest bank forfeiture in history, as well as the largest fine collected by the Department of Justice in a bank secrecy violation.
As part of the agreement, JPM will have to acknowledge its wrongdoing. It will also have to reform its anti-money laundering policies, Umar said.
She added that in exchange for the settlement, criminal charges will be deferred for two years.The recent fine -- which is just one of many in the past year for JPM -- comes five years after the arrest of Madoff, who is currently serving a 150-year prison sentence. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell