Friday, February 4, 2011

"J.P. Morgan was “at the very center” of the Bernie Madoff investment fraud" (JPM)

Rather a serious J'accuse, eh what? It's coming from the trustee for the victims.
Here are two posts from Deal Journal:
J.P. Morgan was “at the very center” of the Bernie Madoff investment fraud, according to a lawsuit unsealed today against the bank.
(Click HERE to read the lawsuit against J.P. Morgan.)
The lawsuit was filed first in December by the trustee seeking to recover money for victims of the Madoff fraud. But the lawsuit had been filed under seal. The sealed version of the lawsuit (click HERE to check it out) was just two pages, and contained no text except for the names of the trustee’s firm and his attorneys.
The unsealed version is 115 pages dripping with claims that J.P. Morgan hid its long-held suspicions that Madoff’s reported investment gains were too good to be true, as The Journal’s Michael Rothfeld is reporting. The trusee, Irving Picard, is seeking more than $6 billion from J.P. Morgan.
The opening salvo of the lawsuit caught Deal Journal’s attention. It juxtaposes an email about a J.P. Morgan official skeptical about Madoff with a famous line from a Hans Christian Andersen tale.


Bernie Madoff Fostered ‘A Cult,’ Lawsuit Says
A lawsuit unsealed today accuses J.P. Morgan of ignoring for years its doubts that Bernie Madoff was running a multi-billion-dollar Ponzi scheme, in order to keep reaping fees and other financial benefits from working with him....MORE