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Another Record JPMorgan Fine, This Time Over Madoff

JPMorgan Chase shareholders can cross one more thing off their list of uncertainties: Preet Bharara, U.S. Attorney for the Southern District of New York, has announced a resolution with the bank over its relationship with convicted Ponzi scheme mastermind Bernard Madoff. The price tag will be $1.7 billion, the largest-ever bank forfeiture, according to Bharara’s office. The money is expected to go to Madoff’s victims.

The most interesting aspect of the agreement is that it’s not quite a settlement, but a deferred prosecution agreement (PDF), which means that the U.S. Department of Justice agrees not to charge the bank criminally for a period of time—two years—while JPMorgan agrees to reform its policies and practices.