SFO joins JP Morgan ‘London Whale’ probe


The Serious Fraud Office has joined in the investigation into JP Morgan’s ‘London Whale’ scandal, it has been reported, as regulators prepare to hit the bank with fines over its trading losses.

Sources told Bloomberg that the Financial Conduct Authority and the U.S. Securities and Exchange Commission are in discussions with the investment bank about settling the probe and suggests that fines could be determined by mid-September.

Furthermore, a spokesman for the SFO told the Telegraph: “We are liaising with our US counterparts as well as the [Financial Conduct Authority] over this case.”

In the US, the Commodity Futures Trading Commission and the Justice Department are also investigating the events surrounding the trading losses.

JPMorgan suffered a loss of more than $6.2bn (£4bn) last year after derivatives bets made by trader Bruno Iksil, who was dubbed the London Whale because of the size of his positions, went wrong.

Last week, two of Iksil’s former colleagues, Javier Martin-Artajo and Julien Grout, were charged with wire fraud and conspiracy charges in the US for allegedly seeking to hide losses.

Iksil is not expected to be charged in connection with the investigation, having reportedly been granted immunity for cooperating with investigators.