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Sep 19, 2013

JPMorgan to pay $920 million in civil probes of Whale losses

By David Henry and Emily Flitter

(Reuters) – The “London Whale” trading scandal, once dismissed by JPMorgan Chase & Co CEO Jamie Dimon as a “tempest in a teapot,” is costing the largest U.S. bank $920 million in penalties and a rare admission of wrongdoing.

Settlements with U.S. and British regulators, made public on Thursday, include citations for poor risk controls and financial reporting systems and failure to inform regulators about deficiencies in risk management that had been identified by bank management.

Sep 17, 2013

JPM’s Whale troubles may not end with civil settlement

NEW YORK, Sept 17 (Reuters) – U.S. prosecutors are still
investigating JPMorgan Chase & Co’s “London Whale”
trading scandal for potential criminal wrongdoing, according to
people familiar with the probe, in a sign that an expected $700
million regulatory settlement may not put the issue to rest for
the largest U.S. bank.

Federal prosecutors in New York and FBI agents are piecing
together the events that led JPMorgan to restate its 2012
first-quarter earnings and eventually reveal more than $6
billion of losses from enormous bets a group of London-based
traders made on illiquid credit derivatives, according to
several sources.

Sep 17, 2013

Exclusive – Civil settlement does not end JPM’s ‘Whale’ troubles

NEW YORK (Reuters) – U.S. prosecutors are still looking into events surrounding JPMorgan Chase & Co’s (JPM.N: Quote, Profile, Research, Stock Buzz) “London Whale” trading scandal for potential wrongdoing by the bank itself, according to several people familiar with the probe, in a sign that an expected $700 million civil settlement with regulators on the issue may not end its legal woes.

The criminal probe being conducted by the Federal Bureau of Investigation and federal prosecutors in New York, which has already resulted in fraud charges against two former JPMorgan employees, is looking at the role others at the largest U.S. bank played in its $6.2 billion trading loss, the sources said.

Sep 17, 2013

Civil settlement does not end JPM’s ‘Whale’ troubles

NEW YORK, Sept 17 (Reuters) – U.S. prosecutors are still
looking into events surrounding JPMorgan Chase & Co’s
“London Whale” trading scandal for potential wrongdoing by the
bank itself, according to several people familiar with the
probe, in a sign that an expected $700 million civil settlement
with regulators on the issue may not end its legal woes.

The criminal probe being conducted by the Federal Bureau of
Investigation and federal prosecutors in New York, which has
already resulted in fraud charges against two former JPMorgan
employees, is looking at the role others at the largest U.S.
bank played in its $6.2 billion trading loss, the sources said.

Sep 13, 2013

Ex-JPM ‘Whale’ deputy argues he was just following orders -source

NEW YORK, Sept 13 (Reuters) – A lawyer for a former JPMorgan
Chase & Co employee who worked with “the London Whale”
Bruno Iksil, has been trying to convince U.S. prosecutors that
his client was the unwitting victim of manipulation by his
superiors, a source familiar with the matter said on Friday.

The negotiations, which have taken place privately and only
involved a handful of lawyers in the Manhattan U.S. Attorney’s
office, are part of former employee Julien Grout’s bid to have
criminal charges of fraud against him dropped.

Sep 13, 2013

Former JPM ‘Whale’ deputy argues he was just following orders: source

NEW YORK (Reuters) – A lawyer for a former JPMorgan Chase & Co employee who worked with “the London Whale” Bruno Iksil has been trying to convince U.S. prosecutors to drop criminal charges against his client, Julien Grout, a source familiar with the matter said on Friday.

On August 14, prosecutors accused Grout, who was Iksil’s deputy in the bank’s Chief Investment Office in London, of trying to hide hundreds of millions of dollars in trading losses by marking positions in a credit derivatives portfolio at falsely inflated prices.

Sep 6, 2013

Exclusive: U.S. prosecutors add China bribery allegations to GSK probe

NEW YORK/LONDON (Reuters) – U.S. authorities are investigating British drugmaker GlaxoSmithKline (GSK.L: Quote, Profile, Research, Stock Buzz) for violations of U.S. anti-bribery laws in China after Chinese government officials accused the company of bribing doctors, a company spokesman confirmed on Friday.

The investigation is part of a wider probe of drugmakers’ sales practices in China, said a source familiar with the investigation.

Sep 4, 2013

Exclusive: JPMorgan subject of obstruction probe in energy case

NEW YORK (Reuters) – U.S. authorities are conducting a criminal investigation into whether several employees of JPMorgan Chase & Co. tried to impede a regulatory investigation into alleged manipulation of power markets, according to multiple sources familiar with the matter.

The probe, which is in its early stages, is being conducted by the Federal Bureau of Investigation and prosecutors in Manhattan U.S. Attorney Preet Bharara’s office. It comes after a JPMorgan subsidiary agreed on July 30 to pay a $410 million penalty to settle a manipulation case brought by the Federal Energy Regulatory Commission.

Sep 4, 2013

JPMorgan subject of obstruction probe in energy case

NEW YORK, Sept 4 (Reuters) – U.S. authorities are conducting
a criminal investigation into whether several employees of
JPMorgan Chase & Co. tried to impede a regulatory investigation
into alleged manipulation of power markets, according to
multiple sources familiar with the matter.

The probe, which is in its early stages, is being conducted
by the Federal Bureau of Investigation and prosecutors in
Manhattan U.S. Attorney Preet Bharara’s office. It comes after a
JPMorgan subsidiary agreed on July 30 to pay a $410 million
penalty to settle a manipulation case brought by the Federal
Energy Regulatory Commission.

Aug 29, 2013

JPMorgan’s internal bribery investigation reviewing 200 Asia hires

NEW YORK (Reuters) – An internal investigation into JPMorgan Chase & Co’s hiring practices in Asia is examining the employment of around 200 people for instances of possibly illegal nepotism, a source said, indicating the bank’s hiring issues may extend beyond the two cases U.S. officials originally asked about.

The U.S. Securities and Exchange Commission had requested information on two deals the bank may have won by hiring relatives of key officials, including the daughter of a Chinese state railway official, the person said. U.S. anti-bribery laws prohibit hiring any individual in exchange for a specific favor or benefit from an outside business partner or client.

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      "Based in New York covering financial crimes, including insider trading, investment scams, accounting fraud and financial firm misconduct."
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