When JPMorgan Chase & Co.’s Jamie Dimon got a 74 percent raise in January, U.S. Attorney Preet Bharara fumed. He had forced the bank just weeks before to pay $1.7 billion for enabling Bernard Madoff’s Ponzi scheme. And yet Dimon was being rewarded.
An internal U.S. Securities and Exchange Commission inquiry found former Enforcement Director Linda Thomsen didn’t break agency rules while talking with JPMorgan Chase & Co.’s legal chief during the bank’s emergency takeover of Bear Stearns Cos. last year.
JPMorgan Chase & Co. and the biggest U.S. banks face billions of dollars in legal costs related to their role in the financial crisis, threatening their profits and the stock price gains they made in 2010, Bloomberg News’s Linda Sandler reports, citing analysts.
The U.S. prosecution of JPMorgan Chase & Co. was deferred by a federal judge after the bank agreed to pay $2.6 billion to resolve criminal and civil allegations it failed to stop Bernard Madoff’s Ponzi scheme.
JPMorgan Chase & Co.’s record $13 billion deal to end U.S. probes of its mortgage-bond sales would free the nation’s largest bank from mounting civil disputes with the government while leaving a criminal inquiry unresolved.
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon went to Washington almost a month ago to see if U.S. Attorney General Eric Holder would settle a criminal probe of mortgage fraud at the bank if it paid more money to resolve related civil investigations.
JPMorgan Chase & Co. shareholders rejected a proposal to split the roles of chairman and chief executive officer currently held by Jamie Dimon , who gave investors an upbeat outlook on the U.S. economy.