Bruno Iksil, the former JP Morgan trader whose bets caused more than $6.2bn in losses last year, is now central to any US charges against his former colleagues.
Bloomberg News reports that Iksil has been cooperating with the Federal Bureau of Investigation and the Manhattan U.S. Attorney’s Office for months in their probe of the bank’s biggest trading debacle ever, said three people with direct knowledge with the matter.
Iksil, the Frenchman who became known as the London Whale because of his trading book’s size, won’t face charges as long as he cooperates and testifies, the people said.
It still isn’t clear who may be charged, the person said. Javier Martin-Artajo, a former executive who supervised Iksil’s trading strategy, and Julien Grout, a trader who helped mark Iksil’s book, are likely to be charged, the New York Times reported August 9. Prosecutors also are weighing penalties for the bank, including a fine and reprimand, the newspaper said in a subsequent report.
JPMorgan ousted all three last year and sought to recoup some of their back pay. The U.S. is investigating whether the traders at JPMorgan’s chief investment office in London intentionally inflated the value of their portfolio to conceal losses, a person with knowledge of the matter has said. Federal officials are considering charges related to mismarking books and falsifying documents, the person said.
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