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FCA drops case against $6.2bn ‘London Whale’ trader

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The FCA has dropped its three-year investigation into the former JP Morgan trader after trades led to $6.2bn (£4bn) in losses.

The Financial Times reports the regulator had sought to bring a civil claim against Bruno Iksil, known as the ‘London Whale’, for failing to prevent significant losses being masked through traders mismarking their positions.

But the Regulatory Decisions Committee, part of the FCA’s independent appeals process, has now ruled the regulator did not have a strong enough case to proceed.

The FCA says: “We can confirm that we will not be taking any further action.”

Iksil has struck an immunity deal with prosecutors in the US and is co-operating as a witness in criminal and civil proceedings.

JP Morgan was fined £137.6m by the FCA in September 2013 after failing to act when trading risk limits were breached.

Achilles Macris, who ran the London office of JP Morgan’s chief investment office, won a challenge at the Court of Appeal in May, which found the regulator had improperly identified him in the 2013 final notice. In June the FCA said it was seeking leave to appeal the decision from the Supreme Court.


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JP Morgan Chase Bank has been fined a total of £572m by UK and US regulators over the “London Whale” $6.2bn trading losses incurred by the bank. The FCA has fined the firm £137.6m, the US Securities and Exchange Commission has imposed a fine of $200m (£124.4m), the Office of the Comptroller of the Currency […]

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There are 2 comments at the moment, we would love to hear your opinion too.

  1. I think its got very little to do with insufficient evidence, but everything to do with his immunity deal with the US !

    Looks like the FCA have been ordered to back off !! by a bigger bully than themselves !

  2. Jonathan Purle 13th July 2015 at 9:55 am

    The RDC is not an ‘appeals process’.

    If somebody is unwilling to settle with FCA Enforcement over a matter, the RDC is there to hear the case and to determine it with a degree of independence from Enforcement (it includes lay members). Unless one ‘settles’, there is no decision until the RDC opts to issue a Decision Notice.

    Indeed, it is quite common for the RDC either to discontinue an action or to reduce a penalty and the stated scope for action.

    This case demonstrates the importance of opposing excessive, arbitrary or politicised attempts by FCA Enforcement to impose penalties, rather than opting for the pretend ‘discount’ that they offer you for rolling over.

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