Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Q: What’s $2.6B? A: Morgan’s current tab for settling up on failure to file suspicious activity reports on Madoff scheme

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Currently looks like J.P. Morgan will be wiring out $2.6B in the next few days to settle charges of having an insufficient anti-money laundering program and not filing suspicious activity reports on the Madoff fraud.

The Wall Street Journal’s tabulation as J.P. Morgan Settles Its Madoff Tab:

  • $1.7B – paid to the recovery fund – JPM also renounces any claim against the recovery fund and agrees it will not take a tax deduction for the $1.7B according to the DPA.
  • $350M – paid to OCC in separate settlement
  • $461M – fine assessed by Treasury Department unit that monitors money laundering programs but waived in light of other fines paid by Morgan
  • $543M – Separate settlement with bankruptcy trustee
  • $2.592B – total fines, excluding $461M waived by money laundering unit

With the waiver from the money laundering unit, the total didn’t hit $3B, like I thought it would yesterday.

I can’t quite get my head around preparing a wire transfer request for $1,700,000,000 or having accounts sitting around from which you could send out 2 1/2 billion in the next few days, but then my frame of reference is based on working in a bank holding company with a mere $300M in total consolidated assets.

Written by Jim Ulvog

January 8, 2014, 8:29 am at 8:29 am

Posted in Other stuff

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  1. […] I’m still trying to sort out the $2.7B settlement. […]

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