Tags: JPMorgan | Bernard Madoff | Ponzi | pay

Fox Business: Breakup Fear Led JPMorgan to Settle Madoff Case

Monday, 06 Jan 2014 05:34 PM

By Greg Richter

JPMorgan Chase & Co. is agreeing to pay $2 billion to the federal government over Bernard Madoff's Ponzi scheme because it fears the government will break up the bank if it doesn't, says Fox Business Network reporter Charles Gasparino.

In the highly regulated banking environment, the federal government can put someone out of business through various means, not just with an indictment, Gasparino said Monday on Fox News Channel's "Your World with Neil Cavuto."

Gasparino said sources close to the board told him that members were worried about a breakup in August if it did not act.

"They'll do anything. They'll pay any fine," Gasparino said, hoping for "smooth sailing." But Gasparino doesn't think it'll be that easy for the bank.

"I think it's only smooth sailing when it's a different administration for these guys," he said.

JPMorgan is accused of ignoring signs that Madoff was running a Ponzi scheme that defrauded thousands of investors. Gasparino said the "weird" part of the case is that no "main person" at JPMorgan was charged.

"The reason why they're not is because JPMorgan maybe as an institution didn't do anything worse than what the Securities and Exchange Commission did," he said. The SEC itself had evidence of Madoff's wrongdoing and didn't act on it, he said.

Gasparino is also suspicious of what he calls the "interesting coincidence" that the feds began targeting JPMorgan after its CEO, Jamie Diamond, began attacking the Obama administration on economic and regulatory policy.

Related Stories:

© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Nevada's AG Joins Suit Against Obama's Deportation Relief for Illegals

Wednesday, 28 Jan 2015 23:21 PM

Nevada's newly minted Republican attorney general has joined a multistate lawsuit seeking to block President Barack Obam . . .

Research Institute: NKorea May Be Trying to Restart Nuke Program

Wednesday, 28 Jan 2015 23:16 PM

North Korea may be attempting to restart its main nuclear bomb fuel reactor after a five-month shutdown, a U.S. research . . .

Karl Rove: GOP Should Fight Hillary on Foreign Policy, Jobs, Govt Debt

Wednesday, 28 Jan 2015 22:04 PM

With former Secretary of State Hillary Clinton the likely presidential nominee of Democrats in 2016, GOP strategist Karl . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved