Regulators are trying to clamp down on rogue traders like JPMorgan Chase's Bruno Iksil, nicknamed the London Whale, who amassed large positions in credit derivatives as part of a complex trading strategy that eventually soured.
NEW YORK — Two former JPMorgan Chase & Co employees are facing criminal charges related to the trading scandal that cost the bank US$6.2-billion last year, but the trader who earned the nickname “the London Whale” and was at first most closely tied to the scandal is not one of them.
In fact, Bruno Iksil, who is cooperating with federal prosecutors, pushed back against the efforts of his former colleagues Javier Martin-Artajo and Julien Grout to hide the mounting losses, according to court filings.
By Matt Schilling:When investors began to trade in the after-hours session on Thursday May 10th news broke of JPMorgan Chase (JPM) losing nearly $2 billion dollars as a result of derivatives trading. Those trades were initiated by one Bruno Iksil from JPM's Chief Investment Office located in London.
LONDON, Jan 16 (Reuters) - JPMorgan Chase & Co has reached an out-of-court settlement over its lawsuit against the former boss of Bruno Iksil, the trader known as the "London Whale" for huge bets he took that cost the bank $6.2 billion, a person familiar with the matter said. Javier Martin-Artajo, who was Iksil's immediate supervisor, had been named as a defendant in a lawsuit filed at London's High Court on Oct. 22.
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon sought to hide escalating trading losses that surpassed US$6.2 billion, misled investors and dodged regulators as a “monstrous” derivatives bet deteriorated last year, a Senate probe found.
Somewhat ironically, the "punishment" of Goldman and JPMorgan has boiled down to the punishment, or lack thereof, of two Frenchmen. On one hand, we have Fabrice Tourre, who we are led to believe (laughably so) was solely-responsible for all CDO-related transgressions at Goldman in the 2003-2007 period. On the other, we have the London Whale, former JPMorgan employee and also French citizen, Bruno Iksil who was the catalyst and public face, that led to the unwind of the biggest prop trading desk in history.