Criminal action against JPMorgan likely in Madoff case

JPMorgan Chase & Co and federal authorities are nearing settlements over the bank's relationship with convicted Ponzi schemer Bernard Madoff, striking tentative deals that would involve about $2 billion in penalties and a rare criminal action, the New York Times reported.

The settlements would fault the bank for turning a blind eye to Madoff's huge Ponzi scheme, the Times said, citing people briefed on the case.

JPMorgan spokesman Joseph Evangelisti declined to comment on the New York Times report when contacted by Reuters.