J.P. Morgan to Accept $700+ Million Fine Over 'London Whale' Fiasco

×
US-BANK-CRIME-JP MORGAN
Getty Images
The Wall Street Journal Monday afternoon broke the news that a host of regulators are expected to hit J.P. Morgan Chase (JPM) with fines of at least $700 million over its handling of the "London whale" trading loss case in 2012. Reporting from CNBC pegs the fines at closer to $800 million.

The SEC, Office of the Comptroller of the Currency, the Federal Reserve and other agencies have found that the bank lacked adequate internal controls and monitoring of its derivatives traders. It was in derivatives trading that Bruno Iksil made -- and then, with some help, attempted to cover up -- the massive bad bets that cost J.P. Morgan Chase $6 billion. But this settlement is related to charges brought against two other employees: Javier Martin-Artajo, Iksil's supervisor, and Julien Grout, who worked for Iksil.

As the Journal explained:

U.S. prosecutors last month filed criminal charges against the two former traders, Javier Martin-Artajo and Julien Grout, with four counts of conspiracy, wire fraud, faking books and records and causing J.P. Morgan to make "false and misleading" statements in two securities filings in 2012. The two men hid hundreds of millions of dollars in losses, prosecutors alleged.


An official announcement could come as soon as next week, according to sources knowledgeable about the case.

Increase your money and finance knowledge from home

Timing Your Spending

How to pay less by changing when you purchase.

View Course »

Advice for Recent College Grads

Prepare yourself for the "real world".

View Course »

Add a Comment

*0 / 3000 Character Maximum

8 Comments

Filter by:
Jim

Where do crooked companies like J P Morgan get the money to pay such a fine? Weren't they about to go under recently? Maybe it's a dollar down a dollar a month until paid off sorta deal.

September 17 2013 at 7:33 AM Report abuse rate up rate down Reply
norman

A good case of Javiars, please!

September 17 2013 at 3:16 AM Report abuse rate up rate down Reply
chemconst

when will our attorney general have the guts to do his job and charge Jamie Dimon with criminal charges?

Harris Glasser
www.Harris helps.org

September 16 2013 at 11:02 PM Report abuse rate up rate down Reply
Garysfg

No one can convince me that Jamie Dimon did not know what was going on....I hope the Feds go after him next...BZ

September 16 2013 at 10:39 PM Report abuse rate up rate down Reply
rtgarton

Hope the people responsible go to jail for a long time and become someones girlfriend in prison.

September 16 2013 at 9:39 PM Report abuse rate up rate down Reply
Thomas G Caffrey

How come JP Morgan is being investigated ?Maybe because thet don't agree with the current administrations policies . JP Morgan and Wells Fargo were the only major banks that did not want or need TARP money but were forced to take it .

September 16 2013 at 6:54 PM Report abuse +1 rate up rate down Reply
abudj

1% OF THE POPULATION CONTROLS OVER 90% OF THE WEALTH IN THE U,S,A,AND 1 IN 5 CHILDREN ARE HUNGARY.WE ARE A THIRD WORLD COUNTRY AT THE MERCY OF SPECIAL INTERESTS AND A CORRUPT SENATE AND CONGRESS

September 16 2013 at 6:08 PM Report abuse rate up rate down Reply
rcole59000

throw these banksters in jail

September 16 2013 at 5:49 PM Report abuse +1 rate up rate down Reply
dandrequip

It is sad that some will see this as capitalism gone wrong. It is SOMETHING gone wrong that is for sure. Government and Banks and their incestious relationship. While most of us try to figure out what to do about next month's mortgage payment, these idiots (at JP Morgan and the SEC) are playing a game all for show. THIS IS CHRONY CAPITALISM - A GAME THE DEMOCRATS PLAY THE BEST. REPUBLICANS ARE GOOD AT IT, BUT DEMOCRATS HAVE MASTERED IT.

September 16 2013 at 5:49 PM Report abuse +2 rate up rate down Reply
glensfallslad

It continues to baffle me that all you have to do is pay several million dollars of corporate dollars ( stock payers dollars) for corporate executives and manager to get off scot free from any wrong doings. Is not some of the violations criminal? What about a prison sentence. I think a lot of these corporate rats would start to think twice before they put money before their legal responsibilities to the consumer and stock holders. Maybe the way to go with our legal system is to codify all crimes with financial fines.
So if a person decides to murder someone: that would be lets say a million dollars and so on. And then there is Congress, what a joke.

September 16 2013 at 5:14 PM Report abuse +1 rate up rate down Reply