JP Morgan expecting multiple fines over Whale loss

Beached Whale

JPMorgan expects to be fined by authorities over last year’s $6.2bn trading loss, which led to criminal charges against two former employees, said a person familiar with the matter.

Bloomberg News reports that the Securities and Exchange Commission signaled in a complaint filed yesterday against Javier Martin-Artajo, 49, and Julien Grout, 35, that the bank will be held accountable for providing inaccurate information to investors after the two men 'fraudulently' mismarked their trades to conceal losses.

'JPMorgan failed to furnish to the commission, in accordance with the rules and regulations prescribed by the commission, such financial reports as the commission has prescribed,' the SEC wrote in its complaint. SEC spokesman John Nester didn’t return a call seeking comment.

The bank also expects to be fined by the Department of Justice, the Commodity Futures Trading Commission and the U.K.’s Financial Conduct Authority, said the person, who asked not to be named because the discussions are private.

JPMorgan CEO Jamie Dimon, 57, said in his April letter to shareholders that the bank was facing more sanctions related to the losses. Bruno Iksil, the Frenchman dubbed the 'London Whale' because his trading portfolio grew so large, is cooperating with the U.S government.

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