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Fraud In Jp Morgan Chase Essay

624 words - 3 pages

JPMorgan Chase is one of the oldest financial functioning financial institutions in America today, dating back to over 200 years ago. JPMorgan Chase is currently the largest bank in the United States with estimated total assets being equal to $2.5 trillion. They have branches in over 60 countries and employ upwards of 260,000 employees. The company was founded in 2000, when Chase Manhattan Corporation and J.P. Morgan & Co. merged together. However the Chase Manhattan Corporation was formed in 1995 when the Bank of Manhattan Company bought out the Chase National Bank. The Bank of Manhattan Company however was established in 1799, giving JPMorgan Chase roots back to the late 18th century.
JPMorgan Chase is the result of the joining and buying out of over 1200 predecessor institutions, the most important of which include J.P. Morgan, Chase Manhattan, Chemical, Manufacturers Hanover and National Bank of Detroit. Since JP Morgan & Company and Chase Manhattan Corporation have joined together they have become very successful, even considered the largest bank in America by some.
However, recently JPMorgan Chase has agreed to pay more than $2 billion on Tuesday to settle criminal charges that the bank turned a blind eye to the largest financial fraud in US history. Former stockbroker, financier and investment broker Bernard Lawrence Madoff was convicted of fraud and sentenced to 150 years in prison and it was recently brought to light that JPMorgan Chase may have been involved in the Ponzi scheme.
The accusations were apparently so large that the corporation has offered to pay $2.5 billion just to settle the criminal charges. They will forfeit a record $1.7 billion to settle criminal charges, pay $543 million victims for civil claims and $350 million civil punishment for what the Treasury Department deemed "critical and widespread deficiencies" in its corporation to prevent...

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