JPMorgan Made $907 Million From Madoff Accounts, Study Says

JPMorgan Chase & Co., the second-biggest U.S. bank, made $907 million in pretax profit from deposits held at the bank by imprisoned Ponzi scheme operator Bernard L. Madoff, a study said.

The Madoff firm’s balances in its JPMorgan account generated the profit from 1986 to 2008, according to Linus Wilson, an assistant finance professor at the University of Louisiana at Lafayette. Entitled “Madoff’s Dirty Money,” the study posted on the Social Science Research Network on Feb. 27 uses “previously unanalyzed data” from the Securities Investor Protection Corp., which handles the Madoff firm’s bankruptcy, Wilson said.