JPMorgan agrees $150m London Whale settlement

Beached Whale

JPMorgan agreed to pay $150m to settle investor claims that it hid from them as much as $6.2bn in losses caused by a trader dubbed the London Whale.

Bloomberg News reports that a group of pension funds accused JPMorgan of turning its chief investment office in London into a 'secret hedge fund' that caused the losses. The bank told investors that the office’s primary role was managing risk when in fact it was engaging in trades to generate profit, they said.

The settlement 'reflects a reasonable compromise concerning the merits of lead plaintiffs’ claims" and "the obstacles to prevailing at trial', the pension funds said in a filing seeking court approval of the deal.

Ohio pension funds and other plaintiffs in the case claim they incurred tens of millions of dollars of losses because their fund managers were given 'false and misleading information'. 

To access the complete Bloomberg News article hit the link below:

JPMorgan Chase to Pay $150 Million to Settle ‘Whale’ Suit

Tom Hayes Libor Jail Sentence Cut to 11 Years, Conviction Upheld

JefferiesAnd the Best Place to Work in the global financial markets 2017 is...

Register for Financial Markets News Alerts