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
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV