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Friday, December 3, 2010

JP Morgan (NYSE:JPM) Sued Over Madoff for $6.4 Billion

JP Morgan (NYSE:JPM) has been sued in regard to the Bernie Madoff debacle, with trustee Irving Picard filing a $6.4 billion lawsuit against the giant financial institution.

They are accused of approving of and supporting Madoff in his fraud and played a central part in the situation.

According to Picard, JP Morgan continued to generate profits and collect fees from Madoff while they ignored the fraud he was engaged in. He also said documentation shows they at minimum were suspicious of the fraud being practiced by Madoff.

The lawsuit, which was filed in U.S. Bankruptcy Court in New York, is asking for $5.4 billion in damages to be paid to victims of Madoff, and another $1 billion for the profits and fees received by JP Morgan from Madoff.

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