JPM needs to give Madoff's money back

Finally? What took them so long????

From the NY Post today:

A likely target could be JPMorgan Chase, which has been accused of pulling its money from Madoff ahead of the breaking scandal, leaving its clients behind.

JPMorgan gave its clients access to Madoff through a product that let them lever their returns on funds that invested with the fraudster.

The bank invested $250 million of its own money in the product, known as levered notes, but pulled out months before Madoff was arrested in December.

A likely target? Here's the story how JPMorgan srewed Madoff investors back in January.

It's worth a re-read!

But I'll highlight just one part of it:

In 2006 JP Morgan allowed bank investors to leverage their bets on Madoff, and then put $250 million of the firms money alongside those investors to invest with them. JP Morgan, then yanked their money a few months before Madoff collapsed, without telling any of those investors!

They used the Goldman Sachs "model" that was used during the subprime debacle. Goldman got short sub-prime, while still selling the product to it's clients.
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And then check out this beauty. JPM then said this:

JPMorgan Chase says that its potential losses related to Bernard L. Madoff, the man accused of engineering an immense global Ponzi scheme, are “pretty close to zero.”
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Looks like JPM's losses in Madoff won't be limited to just $250 million. They like Goldman, sold his fund, to get the fees, while they fleed, just like Goldman shorted sub-prime while selling it!