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JPMorgan Chase May Be Penalized in Madoff Case

Jerome Favre/Bloomberg via Getty Images (NEW YORK) -- JP Morgan Chase, America’s biggest bank, may face action from federal authorities who suspect that the bank “turned a blind eye” to Bernie Madoff’s massive Ponzi scheme, reports The New York Times.

The case comes right after the bank reached a tentative $13 billion settlement with federal prosecutors over the sale of flawed mortgage products.

ABC News has confirmed that prosecutors and JPMorgan have held preliminary discussions about a so-called deferred prosecution agreement. This arrangement would suspend criminal charges in exchange for a fine and other concessions, the Times reports.

“We’re not commenting today other than to point people to our many previous statements where we’ve said that 'all of our personnel acted in good faith,’” the bank said in a statement Thursday.

Copyright 2013 ABC News Radio

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