Word: banking
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...notion a bank can be concerned about investments with Madoff and then be unconcerned by the same man's vast sums of cash flowing in and out of the same bank has experts and lawyers still shaking their heads. Others see it as a classic breakdown between technology and the human factor...
...lawyer, Howard Kleinhendler, of Wachtel & Masyr LLP, is following the money trail and believes Madoff's Chase account was "suspicious" and should have been shut down the moment the bank pulled its funds from Fairfield Greenwich. Kleinhendler represents a dozen Madoff victims. (Read "Madoff Victims Look for Ways to Recover Their Money...
...from Bear Stearns executives that Madoff's investments were phony." JPMorgan Chase acquired Bear Stearns in March 2008. "Bear Stearns had done deals with Madoff. They were on boards together," Kleinhendler says, and therefore, he posits, perhaps executives at Bear knew Madoff's business was fishy and tipped the bank...
Chase asserts that its withdrawal was normal procedure. The bank withdrew the $250 million when it "became concerned about the lack of transparency to some questions we posed as part of our review," said Chase spokeswoman Kristin Lemkau in a January 2008 New York Times article. A Chase spokesman did not comment further. Fairfield had no comment...
...International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001 makes it illegal for a bank to accept funds it knows, or has reason to believe, were derived from fraud. In addition, it's obliged to report its suspicions to authorities. A tangle of federal and state agencies could investigate such potential banking duplicity, but for national banks like JPMorgan Chase the first overseer is the Department of the Treasury's Office of the Comptroller of Currency. OCC examiners conduct on-site reviews of national banks and provide supervision of bank operations. For OCC to investigate, it must first...