JPMorgan Chase & Co. officials won't be penalized as part of a deal the largest U.S. bank is negotiating with the Justice Department over alleged failures to warn about Bernard Madoff's massive fraud, said people close to the talks, the Wall Street Journal reported today. U.S. Attorney Preet Bharara and U.S. banking regulators intend to announce a total of more than $2 billion in fines this week, but all fines will be paid by the company as opposed to individuals. New York-based J.P. Morgan is expected to sign a so-called deferred prosecution agreement with the Justice Department where it will acknowledge that it didn't have the proper systems in place to catch Madoff, and that various procedures designed to root out and report such suspicious behavior were flawed, said people close to the talks.
