The inspector general of the US treasury department has threatened to punish JPMorgan Chase and Co for failing to turn over documents to regulators investigating the bank’s ties to Bernard Madoff’s Ponzi scheme.

Eric Thorson gave the largest US bank a January 11th deadline to co-operate with the investigation by the office of the comptroller of the currency or risk sanctions for impeding its oversight.

JPMorgan, according to the letter of December 21st, says the information is protected by attorney-client privilege. Madoff is serving a 150- year sentence after confessing to the fraud that once claimed to have $65 billion in customer assets.

– (Bloomberg)