JPMorgan to pay $1.7 bn to victims of Madoff Ponzi fraud

US banking giant JPMorgan Chase will pay $1.7 billion to the victims of Bernard Madoff's Ponzi scheme under an agreement with prosecutors, a US Attorney announced Tuesday.

JPMorgan admitted to charges that it failed to maintain an effective money-laundering program and did not file a suspicious activity report on Madoff, said Preet Bharara, US Attorney for the Southern District of New York.