Tags: JPMorgan | SEC | London | Whale

JPMorgan Nears Settlement With SEC on London 'Whale' Loss

Thursday, 08 Aug 2013 06:07 PM

 

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The trader at the center of JPMorgan Chase's $6.2 billion trading loss last year will not face charges related to the incident, a source familiar with the matter said on Thursday.

Iksil, who worked in JPMorgan's chief investment office in London and incurred losses on oversized positions in a derivatives market, is cooperating with government investigators, the source said.

The Federal Bureau of Investigation in New York and the U.S. Securities and Exchange Commission, along with regulators in the U.K., opened probes last year into the activity surrounding the costly bets, which earned Iksil the nickname "the London Whale" from his fellow Wall Street traders.

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The case is still open, but according to a New York Times report on Thursday, JPMorgan is close to a deal with the SEC and British regulators, which is expected to be announced in the fall. The fate of a potential criminal case against JPMorgan or individuals who worked for the bank during the incident remains unclear.

Spokesmen for the FBI and the SEC declined to comment. Spokeswomen for JPMorgan and U.S. Attorney Preet Bharara did not immediately respond to a request for comment. Iksil's lawyer declined to comment.

In March, a U.S. Senate committee reported findings from its own investigation, concluding JPMorgan ignored risks, misled investors, fought with regulators and tried to work around rules as it dealt with mushrooming losses in the portfolio for which Iksil was trading.

Editor’s Note: Weird Trick Adds $1,000 to Your Social Security Checks

 

© 2014 Thomson/Reuters. All rights reserved.

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