Former JP Morgan trader Bruno Iksil — dubbed the London Whale for the colossal $US6.2 billion trading loss last year — has been cooperating with the FBI and the U.S. Attorney’s Office for months as regulators pry further into the bank, Bloomberg reports.
Three sources told Bloomberg that Iksil will avoid facing charges if he cooperates and testifies.
Last week the New York Times reported that government authorities are planning to arrest two other former JP Morgan employees connected to the trading debacle: Javier Martin-Artajo, a manager who oversaw trading, and Julien Grout, another London trader.
That means we could be seeing action in this case sooner than anyone imagined (From Bloomberg):
Prosecutors may announce charges as early as this week against former London-based JPMorgan employees, accusing them of trying to mask losses on a complex derivatives portfolio, said another person who asked not to be named because the investigation isn’t public. The episode has already sparked a Senate subcommittee hearing and prompted JPMorgan’s board to cut Chief Executive Officer Jamie Dimon’s pay in half.
Prosecutors are also reportedly pursuing a reprimand and fine for the bank itself.