| LONDON, April 11
LONDON, April 11 A former JPMorgan Chase & Co
executive has won the right to challenge criticisms by
Britain's financial watchdog of his actions in connection with
the "London Whale" derivatives trading scandal.
The Financial Conduct Authority (FCA) infringed the rights
of Achilles Macris by failing to give him the right of reply to
its report into the affair, a London tribunal ruled on Thursday.
Macris ran the London division of JPMorgan's Chief
Investment Office, where Bruno Iksil, nicknamed "the London
Whale" for the size of his derivatives trades, stacked up losses
of more than $6.2 billion.
Macris, a Greek citizen, appealed against the findings of
the watchdog's report in October.
In its report on the 137.6-million-pound ($231 million) fine
it levied on the bank over the losses, the FCA did not mention
Macris by name but said that "by virtue of the conduct of the
CIO London management", JPMorgan had deliberately misled the
Macris argued that the FCA had infringed his rights and
unfairly prejudiced him in the notice without giving prior
notice or a right of reply.
In a statement published on its website on Friday, that FCA
said the tribunal ruled that Macris "was identified in the
notice and therefore should have been afforded third-party
The FCA said it was seeking permission to appeal against the
If the FCA fails to win an appeal, Macris could bring a
separate case to determine whether the FCA's criticisms were
In an emailed statement sent on Macris' behalf, law firm
Clifford Chance said "he looks forward to challenging the
findings made against him ... which fail to take proper account
of the actions he took and mischaracterise his dealings with the
JPMorgan agreed to pay $920 million in penalties last year
to the U.S. Federal Reserve, the U.S. Securities and Exchange
Commission, the U.S. Comptroller of the Currency and the FCA
over the trading scandal.
Iksil's former boss, Javier Martin-Artajo, and junior trader
Julien Grout were indicted in the U.S. in September on five
charges each, including securities fraud and conspiracy, for
seeking to hide losses as they began to mount. Iksil has not
been criminally charged and has been cooperating with U.S.
Martin-Artajo and Grout are not in the United States and
have not returned to face the charges. Macris was
($1 = 0.5961 British Pounds)
(Reporting by Clare Hutchison; editing by Erica Billingham and