Exclusive: JPMorgan settles lawsuit against "Whale" boss - source

LONDON Wed Jan 16, 2013 1:17pm EST

The entrance to JPMorgan Chase's international headquarters on Park Avenue is seen in New York October 2, 2012. REUTERS/Shannon Stapleton

The entrance to JPMorgan Chase's international headquarters on Park Avenue is seen in New York October 2, 2012.

Credit: Reuters/Shannon Stapleton

LONDON (Reuters) - JPMorgan Chase & Co (JPM.N) has reached an out-of-court settlement over its lawsuit against the former boss of Bruno Iksil, the trader known as the "London Whale" for huge bets he took that cost the bank $6.2 billion, a person familiar with the matter said.

Javier Martin-Artajo, who was Iksil's immediate supervisor, had been named as a defendant in a lawsuit filed at London's High Court on October 22.

JPMorgan said last July it was seeking to claw back pay from those people it held responsible for the losses. Details of the action against Martin-Artajo were not released.

A source familiar with the lawsuit said on Wednesday the case against Martin-Artajo had now been settled.

Further details were not available. JPMorgan declined to comment. Martin-Artajo's lawyer, Greg Campbell of Mishcon de Reya, declined to comment.

Campbell said last year he was confident his client would be cleared of wrongdoing, noting he had never attempted to conceal the losses either directly or indirectly.

JPMorgan said in July all managers in the chief investment office (CIO) with responsibility for the losses had left the bank. Martin-Artajo and the former CIO head in Europe, Achilles Macris, were among those who left, along with Iksil himself.

JPMorgan on Wednesday released a detailed report on the loss from trading positions taken from London for the CIO. The trades, made with credit derivatives, became too big for the company to exit easily.

(Reporting by Kirstin Ridley; Additional reporting by Steve Slater; Editing by Alex Smith and Mark Potter)

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Comments (1)
bohemianbill wrote:
JPMorgan said in July all managers in the chief investment office (CIO) with responsibility for the losses had left the bank. Martin-Artajo and the former CIO head in Europe, Achilles Macris, were among those who left, along with Iksil himself.

“July all managers”

Lying bags of schit! Dimons still onboard with a 10 million dollar PERFORMANCE BONUS, only in America would shareholders put up with this crap. As shareholders you have a responsibility to protect new shareholders from this sociopath. Quit buying into the JPM byline that Dimon’s a financial genius, he is a CROOK and to not demand his resignation makes each and everyone of you the same.

Jan 16, 2013 2:18pm EST  --  Report as abuse
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