The New York Times reported on Tuesday that US prosecutors are investigating whether JPMorgan Chase & Co. (JPM) properly alerted authorities about the suspicious activities of its long-time client, convicted fraudster, Bernie Madoff.
The prosecutors said that JPMorgan may have failed to adhere to a federal law that requires banks to alert the proper authorities when suspicious transactions occur.
A JPMorgan spokesperson told the New York Times, “We believe that the personnel who dealt with the Madoff issue acted in good faith in seeking to comply with all anti-money laundering and regulatory obligations.”
According to the trustee appointed to handle the liquidation of Maddof’s firm, JPMorgan, which was Madoff’s main bank for over 20 years, and other financial institutions ignored numerous signs of wrongdoing from Madoff’s business.
JPMorgan shares were down 43 cents, or -0.89%, during Wednesday morning trading. The stock is up +4.97% over the past year.
The Bottom Line
Shares of JPMorgan (JPM) have a dividend yield of 3.15% based on Wednesday’s intraday trading price of $48.21 and the company’s annualized dividend payout of $1.52 per share.
JPMorgan Chase & Co. (JPM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.