JPMorgan hits back over Madoff trade secrets

4 March 2011

US bank JPMorgan has hit out at the trustee of disgraced financier Bernard Madoff over an appeal to use confidential information more freely as part of the ongoing legal dispute between the parties.

Irving Picard recently appealed for a relaxation of the rules on distributing relevant trade secrets, but JPMorgan - which is being sued for $6.4 billion - responded by saying he had no right to breach an earlier agreement, Bloomberg reports.

"The trustee is not entitled to abrogate confidentiality arrangements that have been relied upon by JPMorgan and other parties," the firm said in filings submitted to the US Bankruptcy Court this week.

A further eight objections came from other financial institutions which are being pursued through the courts by Mr Picard, including UBS, Citigroup and HSBC. He is seeking around $100 million in damages for clients of Madoff's Ponzi scheme.

Last month, Mr Picard claimed that Citigroup had overlooked numerous red flags relating to the scheme dating back to as early as 2005.

By Claire Archer

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