For years, convicted fraudster Bernard Madoff, who ran the biggest Ponzi scheme in history, claimed from prison that JPMorgan Chase, knew about the scam that he conducted through the bank. More than five years after his arrest Madoff continues to haunt the nation’s biggest bank and managed to hurt JPMorgan’s fourth quarter earnings of 2013.
JPMorgan Chase released financials on Tuesday that showed the bank earned $5.28 billion, or $1.30 per share, falling 7.3% from the previous year and coming in just below Wall Street’s expectations. The bank’s fourth quarter earnings beat expectations if adjusted for so-called one-time items. A few days ago JPMorgan Chase entered into a deferred prosecution agreement with federal prosecutors in Manhattan to resolve criminal allegations related to the bank’s relationship with Madoff and agreed to pay $2.6 billion to various federal authorities and plaintiffs in civil cases. Legal expenses, including the recently announced Madoff settlements, cost JPMorgan $1.1 billion, or 27 cents per share in the fourth quarter.