Dec 12 (Reuters) - JPMorgan Chase & Co and federalauthorities are nearing settlements over the bank's relationshipwith convicted Ponzi schemer Bernard Madoff, striking tentativedeals that would involve about $2 billion in penalties and arare criminal action, the New York Times reported.
The settlements would fault the bank for turning a blind eyeto Madoff's huge Ponzi scheme, the Times said, citing peoplebriefed on the case. ()
JPMorgan spokesman Joseph Evangelisti declined to comment onthe New York Times report when contacted by Reuters.
Madoff was convicted in 2009 of defrauding thousands ofinvestors and is serving a 150-year prison sentence. JPMorganhas been accused of ignoring warning signs that Madoff'sbusiness was a fraud, often to win more fees and commissions forservices they provided.
The New York Times said the settlement with federalprosecutors in Manhattan would include a so-calleddeferred-prosecution agreement and more than $1 billion inpenalties to resolve the criminal case.
The rest of the fines would be imposed by Washingtonregulators investigating broader gaps in the bank'smoney-laundering safeguards, the paper said.
JPMorgan, the biggest U.S. bank by assets, recently reacheda $13 billion settlement of a range of government claims overbad mortgage securities and struck another deal with regulatorsto pay about $1 billion for its "London Whale" derivativestrading debacle.
HSBC Holdings (HSBA)