JPMorgan ordered to comply with probe of Madoff

Fri Jan 4, 2013 2:50pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Emily Stephenson and Sarah N. Lynch

(Reuters) - The Treasury Department watchdog ordered JPMorgan Chase & Co (JPM.N: Quote) to work with U.S. regulators seeking documents in connection with a probe into the bank's relationship with convicted Ponzi schemer Bernard Madoff, in a warning letter dated December 21.

The letter from Treasury Inspector General Eric Thorson to JPMorgan's general counsel, Stephen Cutler, which was reviewed by Reuters on Friday, revealed that the Office of the Comptroller of the Currency has been unable to get documents it requested.

JPMorgan has argued it does not have to turn over certain kinds of documents to the OCC because it would impinge on its attorney-client privilege rights, according to the letter.

Thorson told the bank his office would not accept that argument and ordered JPMorgan to tell his office by January 11 how it would resolve the dispute with the OCC.

"The OCC could not do its work and carry out its authority under its examination statute...if that statute was interpreted or operated to bar access to bank records for which a claim of privilege was made," Thorson said in the letter, which was first reported by Bloomberg.

Thorson said the OCC referred the matter to the inspector general's office to determine whether JPMorgan was impeding the regulator's national bank oversight program. The OCC is an independent regulator within the Treasury Department.

The letter did not say what kinds of documents the OCC is seeking or give more detail about the bank regulator's investigation into JPMorgan.

A spokesman for the OCC declined to comment on Friday.   Continued...

Commuters are reflected in stone as they walk past the JP Morgan headquarters in New York May 22, 2012. REUTERS/Eduardo Munoz