Reuters reports that JPMorgan Chase has filed a suit in a British court against the former boss of Bruno Iksil, the trader known as the London Whale, for the outsized derivatives positions he took that cost the bank $6.2bn in losses this year.
Javier Martin-Artajo, Iksil’s boss in the Chief Investment Office, is a defendant in a London lawsuit filed October 22nd by the bank and made public today. The court filings didn’t reveal any details of the complaint. Both men have left the bank.
Bloomberg reports that JPMorgan disclosed trading losses in May after what Chief Executive Officer Jamie Dimon said were 'egregious' failures to manage flawed positions on synthetic credit securities. The bank is still recovering from those bets, the losses on which had risen to $6.2bn through the first nine months of 2012 and may increase, the bank has said.
JPMorgan ousted managers responsible for the group’s loss and said it would claw back their pay after an internal probe found traders may have intentionally tried to hide the problem.
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