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13 August 2013

US prosecutors close to JP Morgan London Whale decision

JP Morgan Chase could hear this week if any of its former employees will be charged over allegations that they tried to conceal losses of over $6 billion last year.

By Charlotte Mullen

Canary Wharf London: JPMorgan former employees could face prosecution QQ7

According to Bloomberg, US prosecutors are reviewing the roles of London-based Spaniard executive Javier Martin-Artajo and trader Julien Grout who worked with the trader responsible for the losses, Bruno Iksil, nicknamed the London Whale. The situation remains unclear as to exactly who will be charged, if anyone, with the bank itself potentially liable to receive a large fine and reprimand.

London Whale

Bruno Iksil, known as the London Whale, who was responsible for the trades, is said to be co-operating with prosecutors and it has been reported by Reuters that he will not face charges. The former JPMorgan trader – whose supervisor was Mr Martin-Artajo – has allegedly been cooperating over the last few months with the Federal Bureau of Investigation and the Manhattan US Attorney’s Office in their investigation into the trading scandal.

Further accusations

According to the Washington Post, this is not the only legal issue facing the US’s largest bank as accusations over misconduct in mortgage-backed securities and credit card payments surface. As the dust refuses to settle on the Bernie Madoff case, the bank’s reported blind eye to the existence of the Ponzi scheme is being questioned.  


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