The London Whale strikes back and blames J.P. Morgan CEO

The former JP Morgan trader known as the "London Whale" has spoken publicly about causing the collapse of a US trial over the 2012 trading loss scandal.

Bruno Iksil had agreed to testify against former co-workers Javier Martin-Artajo and Julien Grout in the case, but later changed his story to blame JPMorgan Chase chief executive Jamie Dimon. The trial collapsed on 21 July.

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"I mostly inferred that Dimon and his close lieutenants were responsible much, much more than my two colleagues could ever be," he told the Wall Street Journal in an email.

Iksil's decision to change his testimony led the prosecution in the case against Martin-Artajo and Grout to file to drop the charges.

Prosecutors in the Manhattan US attorney's office said last month that the charges would be dropped because the government “no longer believes that it can rely on the testimony of Iksil".

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It was Iksil's catastrophic trades involving credit default swaps (CDS) which cost J.P. Morgan more than $6bn (£4.5bn) and earned him the nickname the "London Whale" back in 2012. The bank also paid $800m in fines to regulators as a result of the debacle.

But Iksil denied that the changing of his testimony had been the only reason for the collapse of the case. Instead, he suggested, extradition of the defendants had been "impossible", making it difficult to proceed. Martin-Artajo is a Spanish citizen while Grout is from France.

Iksil blamed JP Morgan boss Jamie Dimon, who has claimed that banks are under assault from regulators, after looking into information compiled about at reports published by the US Senate and JP Morgan alongside details of the FCA's investigation into him which was dropped in 2015.

Full story: The London Whale strikes back and blames J.P. Morgan CEO: City A.M.

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