U.S. regulators plan to fault JPMorgan Chase & Co, which served as Bernie Madoff's main bank for two decades, for failing to conduct adequate due diligence and report suspicious activity, according to a person familiar with the matter.
Reuters reports that the U.S. Office of the Comptroller of the Currency is expected to issue a cease-and-desist order against JPMorgan, which will require the largest U.S. bank to put an end to the alleged failures in its anti-money laundering practices.
The timing of the order is uncertain but could come later this year, the source said.
The news agency also reports that a U.S. federal judge blocked the trustee seeking money for Bernard Madoff's victims from interfering with New York state's $410m settlement with Ezra Merkin, a Wall Street hedge fund manager accused of steering client money to the swindler.
Irving Picard, the trustee, had said the settlement with New York Attorney General Eric Schneiderman interfered with his exclusive right to recover money for people who invested with Madoff, by reducing the sums available for him to pursue.