Newly released documents show that high officials of JPMorgan Chase bank knew for a long time that Bernard Madoff was running a Ponzi scheme. They did nothing to protect his investors, but they did protect their own investments that were tied to him. Chase risk analyst to look at a Madoff feeder fund, in February 2006, reported to his superiors that its returns did not make sense because it did far better than the securities that were supposedly in its portfolio. Despite the suspicions, the bank allowed Mr. Madoff to move billions of dollars of investors’ cash in and out of his Chase bank accounts right until the day of his arrest in December 2008, although by then, the bank had withdrawn all but $35 million of the $276 million it had invested in Madoff-linked hedge funds, according to the litigation. Under hypocritical circumstances, we have President Obama expressing guarded support for the Egyptian people in their uprising against those corrupt, entrenched interests, while at home, he is unable to do much about interests like JPMorgan.
Title: Giving Chase: Egypt, OK – But What About America’s Oligarchs?
Author: Russ Baker
Publication: WhoWhatWhy.com, February 10, 2011
Student Researcher: Aluna Soupholphakdy, Sonoma State University
Faculty Evaluator: Peter Phillips, Sonoma State University