JPMorgan Profited Nearly a Billion Dollars From Madoff

NetNet reports that a new study by Dr. Linus Wilson, a finance professor at University of Louisiana at Lafayette, of Bernie Madoff’s massive Ponzi scheme concludes that JPMorgan Chase (JPM) made over $900 million in pretax profits from the Madoff scam. Wilson’s academic research looks at “total Madoff – linked account balances at JPMorgan from 1986 to 2008, a longer period than earlier studies, which may have underestimated JPMorgan’s profits.”

The total figure Wilson arrives at is a whooping $907 million.

Wilson’s study concludes that enough ‘red flags’, such as the very size and regularity of Madoff’s returns, existed to make a reasonable observer suspicious—which presumably includes JPM.