Photo: davelonsdale via flickr
This sounds serious…JPMorgan found that credit trader Bruno Iksil (a.k.a the “London Whale”) was encouraged by his boss to increase the values on some trades above where they would have sold in the market, the Wall Street Journal’s Gregory Zuckerman and Dan Fitzpatrick report citing sources familiar with an internal probe at the bank.
The bank’s internal probe, which is still ongoing, examined emails and voice mails from late March and April, the report said.
As part of its findings, the JPMorgan believes that Iksil’s boss Javier Martin-Artajo, who was a managing director for the credit trading team, persuaded the trader to boost the values on some positions as losses from their bet in the credit market continued to mount, the Journal said citing unnamed sources.
JPMorgan found two communications that the bank believes show Martin-Artajo urging Iksil to do this, according to the report.
What’s more is the probe found that Iksil listened to Martin-Artajo on some occasions, sources told the newspaper.
Both Iksil and Martin-Artajo have left the bank.
On May 10th, JPMorgan revealed a $2 billion trading loss in the bank’s chief investment office in London related to derivatives.
The trading losses are now at $5.8 billion.