London Whale

A summary of the latest exchange and industry news.
JPMorgan Chase & Co officials including Chief Executive Officer Jamie Dimon do not have to face a shareholder lawsuit claiming they failed to properly investigate the "London Whale" trading scandal that caused $6.2 billion in losses, a federal appeals court ruled on Tuesday.
On the eve of a Senate hearing today into whether the Federal Reserve has been “captured” by the institutions it is supposed to regulate, the Fed announced a broad review of its supervision of the largest banks
Regulatory actions taken despite government shut down
Bloomberg reports that JPMorgan will pay about $100 million to settle a probe into the bank’s botched derivatives bets last year.
Fining JP Morgan is not what lawyers call "disgorgement" where illicit profits are clawed back, nor is it "restitution"— the bank itself was the victim.
Julien Grout, a former JPMorgan Chase & Co. trader charged with trying to hide the bank’s record trading loss last year, is arguing to prosecutors that he was following orders from his then-boss, Bruno Iksil.
U.S. prosecutors urged former London-based JPMorgan Chase & Co. traders Javier Martin-Artajo and Julien Grout to surrender and face charges that they attempted to hide trading losses tied to the bank’s $6.2 billion loss on derivatives bets last year.
Two former JPMorgan Chase & Co. employees were charged by U.S. prosecutors with attempting to conceal trading losses at the largest U.S. bank last year as part of a probe of its $6.2 billion loss on derivatives bets.
The former trader whose bets caused more than $6.2 billion in losses last year is now central to any U.S. charges against his former colleagues.