Posted Aug 15, 2013 04:30 pm CDT
Two former traders at JPMorgan Chase in London are facing criminal charges for allegedly hiding hundreds of millions of dollars in trading losses.
Javier Martin-Artajo and Julien Grout are the first to be charged after trades by Bruno Iksil–the so-called “London whale”–cost the bank $6.2 billion in losses, report Reuters, the New York Times DealBook blog and the Wall Street Journal (sub. req.). Martin-Artajo supervised the Iksil, and Grout was responsible for recording daily values on his trading positions, the Wall Street Journal says, citing information provided to a Senate panel.
Martin-Artajo and Grout are accused of conspiracy, wire fraud, falsifying records and contributing to false and misleading statements in securities filings. Lawyer for the men will argue they had leeway to value losses that are difficult to assess. Iksil helped build a case against the two men and was not charged. His nickname refers to the size of the trading losses.
Martin-Artajo and Grout are outside the United States and have not been arrested.