The fallout from the Madoff case keeps spreading. We have already had allegations that JP Morgan was colluding with Madoff's fraud.
Now there is every sign that other investment banks were in on the scam. There is every sign that they were all making money out of the dirty deals, feeding on it like pigs at a trough.
Bloomberg reports that a new lawsuit alleges that Citigroup had ignored the warning signs and knew all about the con man's trading strategy. In the lawsuit, trustee Irving Picard says "Citi knew, and was on notice of, irregularities and problems concerning the trades …. and strategically chose to ignore these concerns in order to continue to enrich themselves."
In the weeks ahead, we can expect lawsuits to hit other banks. All part of Madoff's legacy.