JPMorgan Chase to pay steep price for not reporting Madoff fraud suspicions: $2.5 billion

A New York prosecutor says JPMorgan Chase & Co. looked out for itself when it suspected something was wrong with Bernard Madoff's accounts but otherwise ignored alarm bells.

U.S. Attorney Preet Bharara commented Tuesday as he revealed a deal with JPMorgan. He says the nation's largest bank will forfeit $1.7 billion to settle a criminal case for failing to blow the whistle on the fraud that cheated investors of nearly $20 billion.

The bank will pay more than $2.5 billion when a $350 million Treasury Department penalty and nearly $550 million to settle lawsuits by investors is added.

The prosecutor says JPMorgan withdrew about $300 million from its own Madoff accounts but failed to notify U.S. regulators of its suspicions. The bank says it will do better in the future.