| TFA defends JPM and skeptically deconstructs the accusation, so this comment is forehead-slappingly stupid. If someone comes to an investment bank and asks for access to something that the investment bank knows is a fraud, and the bank provides it and takes the fee, while ending up short the fraud... that's a bit of a problem. As Madoff's banker with billions of dollars on deposit, JPMorgan can see every cash flow. But apparently, they don't notice the disconnect between the business he claims to be doing and the cash, because the banker doesn't even know what the account is for. So much for asking all the right questions. Late in the game, a different part of JPMorgan does a tiny amount of due diligence, and realizes Madoff is a fraud. They don't tell the SEC. They don't talk to Madoff's banker. They take the money out of Madoff funds, effectively going short. They don't tell clients it's a fraud, but basically we don't like it and we like either stuff better, try to move them into other investments. They're in a conflicted position as his banker, to rat him out to clients or authorities. But basically they should have realized something was amiss sooner, and they should have notified the authorities. |