In retrospect, JPM could’ve maybe solved that puzzle using the clues Madoff provided. Maybe.

Mr. Bharara said at a press conference that J.P. Morgan “failed miserably” as an institution concerning Madoff and that the bank repeatedly ignored warnings about him despite “plenty of reasons to be uniquely suspicious.” [..] A J.P. Morgan spokesman said, “we recognize we could have done a better job pulling together various pieces of information and concerns about Madoff from different parts of the bank over time” but “we do not believe that any J.P. Morgan Chase employee knowingly assisted Madoff’s Ponzi scheme.” He said the bank is “making significant efforts” to improve its practices, and “we believe the lessons we have learned will make us a stronger company.”

J.P. Morgan to Pay $2.6 Billion in Madoff Fraud Settlements [WSJ]

Comments (4)

  1. Posted by Homer S. | January 7, 2014 at 10:35 PM

    "Doh!"

  2. Posted by klhoughton | January 8, 2014 at 10:37 AM

    "[T]he bank is 'making significant efforts' to improve its practices, and 'we believe the lessons we have learned will make us a stronger company.'"

    Strangely, such "significant efforts" do not include getting rid of the "leadership" that made those mistakes.

    Strangely.

  3. Posted by Observer | January 8, 2014 at 2:40 PM

    Significant steps also do not involve giving compliance staff any real power. When policing is done by someone whose payday is determined by those they suppose to police you know how it is going to play out.

  4. Posted by Guest | January 8, 2014 at 2:40 PM

    They did solve the puzzle! Duh. They shorted Madoff. Anyone, who thinks, they missed the signs fails to understand an IB mindset.