JPMorgan's 'London Whale' Said To Lawyer Up, UBS Pushes For More, Citi Pulls Out

Beached Whale

The trader at the centre of the criminal investigation surrounding JPMorgan's $5.8bn trading loss has hired a lawyer in Paris, two sources familiar with the investigation told Reuters Thursday.

According to the news agency, Bruno Iksil, a French citizen and a former London-based trader in JPMorgan's Chief Investment office (CIO), is under scrutiny for trades he made in an illiquid market for credit products that resulted in the bank's losses.

U.S. federal investigators are looking at whether Iksil, who was fired in July, and his superiors deliberately mismarked the value of some of the trading positions to try to cover up the losses. JPMorgan is also conducting an internal probe.

In the meantime, The New York Times reports that UBS is the latest financial firm to shoot down Nasdaq’s $62m proposal to compensate customers who lost money during Facebook‘s bungled initial public offering.

In a letter sent to the Securities and Exchange Commission on Wednesday, UBS called on the regulatory agency to reject the exchange’s proposal, describing it as 'inadequate to address the magnitude of Nasdaq’s unprecedented failures'.

Finally, Bloomberg reports that Citigroup's private bank is pulling about $410m from Paulson & Co., the hedge fund seeking to reverse record losses in 2011, according to two people familiar with the matter.

The private bank is redeeming from Paulson’s Advantage Fund and Advantage Plus Fund, said the people, who asked not to be identified because the information is private. Citigroup is also pulling from the Merger and Recovery Funds, the people said.

image: © brydeb

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