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Sep 23, 2013

U.S. government to sue JPMorgan in mortgage case: sources

By Aruna Viswanatha and Emily Flitter

(Reuters) – The U.S. Justice Department is preparing to sue JPMorgan Chase & Co over mortgage bonds it sold in the run-up to the financial crisis, a sign the bank’s legal troubles are not yet behind it.

A lawsuit could come as early as Tuesday, people familiar with the matter said on Monday.

Sep 20, 2013

Scandals cost JPMorgan $1 billion in fines

Sept 19 (Reuters) – It’s $1 billion in payouts that JPMorgan
Chase & Co most likely wants to forget.

In agreements with regulators totaling $1 billion and made
public on Thursday, the nation’s biggest bank settled four civil
investigations into its “London Whale” trading scandal and two
more into the wrongful billing of credit-card customers.

Sep 20, 2013

JPM’s Whale deal with regulators leaves much unsettled

Sept 19 (Reuters) – The “London Whale” trading scandal, once
dismissed as a “tempest in a teapot” by JPMorgan Chase & Co
CEO Jamie Dimon, is costing the largest U.S. bank $920
million in penalties and a rare public admission of wrongdoing.

Settlements with four U.S. and British regulators, made
public on Thursday, resolve the biggest civil probes of the
bank’s $6.2 billion of Whale derivatives trading losses last
year. Criminal investigations are still under way.

Sep 19, 2013

Whale scandal costs JPMorgan $920 million in fines

By David Henry and Emily Flitter

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

Settlements with four U.S. and British regulators, made public on Thursday, resolve the biggest civil probes of the bank’s $6.2 billion of derivatives trading losses last year. Citations against JPMorgan include poor risk controls and failure to inform regulators about deficiencies in risk management identified by bank management.

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.

    • About Emily

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