US said likely to arrest two ex-JP Morgan traders over Whale losses

Beached Whale

US Government authorities are planning to arrest two former JPMorgan Chase employees suspected of masking the size of a multibillion-dollar trading loss.

The New York Times reports that the former employees, who worked in London, could be arrested imminently, according to people briefed on the matter. The action, the people said, would involve criminal fraud charges.

The employees - Javier Martin-Artajo, a manager who oversaw the trading strategy, and Julien Grout, a low-level trader in London - could ultimately be extradited under an agreement with British authorities. Yet the people briefed on the matter, who spoke on the condition of anonymity, cautioned that it is unclear whether British authorities will be able to locate the men, who are natives of other European countries.

Representatives for the FBI and the United States attorney’s office in Manhattan declined to comment, as did a spokesman for JPMorgan.

The plan to arrest the traders hints at an aggressive new stance from the US, which has come under fire for prosecuting only a few Wall Street employees tied to the 2008 financial crisis. Taking aim at employees of a Wall Street giant like JPMorgan, even when they fall below the executive ranks, could send a warning shot across the financial industry.

To access the complete New York Times article hit the link below

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