Friday, August 31, 2012

JPMorgan faces sea of trouble resolving 'Whale' probe




The fallout from a nearly $6 billion (3.8 billion pounds) trading loss at JPMorgan Chase & Co looks like it will haunt the big U.S. bank and its high-profile chief executive, Jamie Dimon, for months to come, Reuters told us.

U.S. authorities are interviewing witnesses in both the United States and Europe to determine if three former London-based traders and others who worked with them at JPMorgan tried to hide some of the mounting losses during the first quarter of this year, said people familiar with the situation.

The situation presents several challenges to U.S. authorities: the potentially irregular trading occurred in London; and it was carried out by non-U.S. citizens, such as French national Bruno Iksil, who became known in the market as the "London Whale" for the size of his positions.  That translates into different rules for different jurisdictions and could raise extradition issues if any individuals are charged….

http://uk.reuters.com/article/2012/08/31/uk-jpmorgan-loss-transatlantic-idUKBRE87U06620120831?feedType=nl&feedName=uktopnewsmid

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