JP Morgan Chase Sued For "Abetting" Madoff Fraud

[sabra]

Source: CBS News/AP

Trustee of Bernie Madoff's Victims Sues JP Morgan Chase for $6.4 Billion for Playing a "Central Role" in Pyramid Scheme

(CBS/AP) When disgraced financier Bernie Madoff's massive pyramid scheme was brought to light, one of the few people or institutions close to him to escape the affair relatively unscathed was JP Morgan Chase Bank.

Many at the time, however, wondered how Chase, Madoff's bank, could not have known something was amiss.

Now, almost two years after the scandal broke, the trustee trying to recover money for investors cheated by Bernard Madoff is suing JP Morgan Chase for $6.4 billion, saying the bank had a central role in abetting the disgraced financier as he carried out his fraud, the Associated Press reports.

Trustee Irving Picard announced Thursday the filing of the lawsuit in U.S. Bankruptcy Court in New York.


Read more: http://www.cbsnews.com/stories/2010/12/02/business/main7111079.shtml?tag=stack

[RUMMYisFROSTED]

1. Not JPMC!

:cry:

Our heroes die so young!

[marybourg]

2. Couldn't happen to a more appropriate villain. nt

[golddigger]

3. I'm still sticking with my pick on JP Morgan...

being the bank Wikileaks is going to expose.

[Demeter]

6. I think Citibank

They are the ones with branches in every nation, or just about.

[thereismore]

4. Madoff was an amateur. He got punished. The banksters got rewarded. nt

[sarcasmo]

5. Big mega banks are pure scum bags.

[Hubert Flottz]

7. They belong in jail with Bernie

Anyone who helped Bernie pull it off.

[Octafish]

8. Madoff trustee sues JPMorgan for $6.4 billion

Source: CNN Money

By Aaron Smith, staff writer
December 2, 2010: 2:20 PM ET

NEW YORK (CNNMoney.com) -- The court-appointed trustee for the liquidation of Bernard Madoff's estate is suing JPMorgan Chase for $6.4 billion for allegedly aiding the most massive Ponzi scheme in history.

The trustee, Irving Picard, is suing the banking company for "nearly $1 billion in fees and profits and an additional $5.4 billion in damages for (JPMorgan's) decades-long role as (Madoff's) primary banker, aiding and abetting Madoff's fraud," according to a statement.

Picard said the complaint was filed under seal in U.S. Bankruptcy Court in Manhattan.

"J.P. Morgan was willfully blind to the fraud, even after learning about numerous red flags surrounding Madoff," said David Sheehan, counsel for the trustee, in a prepared statement.

He accused JPMorgan (JPM, Fortune 500) of being "at the very center of that fraud, and thoroughly complicit in it."



Read more: http://money.cnn.com/2010/12/02/news/companies/jpmorgan_madoff/index.htm

---

Interesting to see what falls out of this suit...and that suit.

[Octafish]

10. Hey Mods!

Sorry about the dupe. I used the advanced Search function -- looking under "Madoff, JPMorgan" in subject lines of original threads only. The search returned zero results.

[Karenina]

11. Crash JP Morgan. Buy 1 silver coin. Holiday season is here!

If you can afford it, buy ONE silver coin. JPM has a naked short on silver and if we peons take physical possession of this metal, one by one, perhaps some sunlight disinfectant will be shown on the situation. The campaign has gone viral and I only hope that Amis can respond to this call to solidarity.

[Octafish]

9. Madoff trustee sues JPMorgan for $6.4 billion

This thread has been combined with another thread.

Click here to read this message in its new location.