| USWorld

Larger text Larger text Smaller text Smaller text | Order Photo Reprints

JPMorgan Chase & Co. employees could be arrested

Email Newsletters

Click here to sign up for one of our email newsletters.

Daily Photo Galleries

By Reuters
Saturday, Aug. 10, 2013, 5:27 p.m.

American authorities investigating the $6.2 billion “London Whale” trading losses at JPMorgan Chase & Co. are considering making arrests, the latest twist in a case that created a scandal for the largest American bank, according to two people familiar with the situation.

The main target of the investigation is Javier Martin-Artajo, the sources said. They did not want to be identified because the investigation is ongoing. Martin-Artajo worked in London as the direct supervisor of Bruno Iksil, the trader who became known as “the London Whale” because of outsized bets in a thinly traded derivatives market.

The United States is also looking at Julien Grout, Iksil's junior trader, according to one of the sources. Grout, who stayed on at JPMorgan after Iksil, Martin-Artajo and another employee were fired from the bank, is the most junior person under investigation by authorities.

The timing of the possible arrests was not clear.

Martin-Artajo's lawyer, Lista Cannon, and Iksil's attorney, Jonathan Barr, did not respond to requests for comment, nor did Grout's lawyer in Paris.

A spokesman for JPMorgan Chase declined to comment.

The investigation is focusing on whether anyone responsible for the trades tried to deliberately mismark them by inflating the value at which they were recorded on JPMorgan's books at the height of the scandal, which took place during the first half of 2012.

Reuters reported on Thursday that Iksil is cooperating with the government and will not face any charges. His cooperation is essential to any arrest, the sources said.

Subscribe today! Click here for our subscription offers.



Show commenting policy

Most-Read Nation

  1. Drug overdose suspected in death of New York doctor found in lobby
  2. Big firms park $2.1T offshore to avoid taxes, study claims
  3. Tennessee board drops vote on seeking God’s mercy over gay marriage
  4. Fantasy sports websites draw Congress’ eye
  5. Number of deported lowest since 2006, AP finds
  6. Boston art lovers stage mock anti-Renoir protest
  7. Floods inundate Phoenix
  8. FAA wants to fine SkyPan $1.9 million for ‘reckless’ drone operations
  9. Duke Energy reaches $7 million deal with N.C. on coal ash
  10. California vineyards skip irrigation amid drought
  11. Michigan factory supervisor wins $310M Powerball prize