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Shocking: JP Morgan Chase Was On to Madoff for Months, Kept Doing Business With Him

 
 
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It's been revealed that JP Morgan Chase suspected Bernie Madoff's investments were "too good to be true" in the two months leading up to the Ponzi schemer's arrest, during which time the bank kept doing business with him anyway.

According to ABC News, lawyers representing Madoff's victims have filed a $6.4 billion lawsuit against JP Morgan Chase, claiming the bank "continued its relationship with Madoff despite having documented suspicions about him."

Indeed, a "Suspicious Activity Report" shows that the bank's London office was, well, suspicious of Madoff's investment returns in October 2008. Madoff was arrested December 11 of that year.

“[T]he investment performance achieved by [Madoff's] funds…is so consistently and significantly ahead of its peers year-on-year, even in the prevailing market conditions, as to appear too good to be true – meaning it probably is.”

As ABC notes, those suspicions did nothing to stop the bank from reaping profits from Madoff's "too good to be true" investments for several weeks, and it did not issue any warnings to U.S. authorities.

AlterNet / By Lauren Kelley

Posted at December 3, 2010, 4:21am