Regulators to impose 'Whale' fines on JP Morgan

The bank could be fined as early as mid-September.

Bloomberg reports that U.K. and U.S. regulators are preparing to impose fines as soon as mid-September on JP Morgan after an investigation into the bank’s London trading losses last year, a person with direct knowledge of the matter said.

The U.K.’s Financial Conduct Authority and the U.S. Securities and Exchange Commission are in negotiations with the New York-based company to settle their probes, according to the person, who asked not to be identified because the talks aren’t public. In the U.S., the Commodity Futures Trading Commission and the Justice Department are also investigating events surrounding the losses.

JP Morgan lost more than $6.2bn last year on derivatives bets made by Bruno Iksil, a trader who was dubbed the London Whale because of the size of his positions.

The U.S. last week charged Javier Martin-Artajo and Julien Grout, two of Iksil’s former colleagues, with wire fraud and conspiracy charges for allegedly seeking to hide losses. Iksil is cooperating with the U.S. in the case.

Spokespersons for JP Morgan, the SEC and the FCA declined to comment.

To access the complete Bloomberg article hit the link below

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