US regulators castigate JPM Chase after $6.2bn trading loss

J.P. Morgan Chase was last night ordered to improve its risk management following a $6.2bn (£3.8bn) derivatives trading loss highlighted by a London-based employee dubbed the "Whale".

The US Federal Reserve and the Office of the Comptroller of the Currency ordered the bank to tighten controls and improve compliance following the failings. In April, it emerged J.P.Morgan employed a London-based trader called Bruno Iksil, who was called the London Whale because of the large positions he took. The move by US regulators represents the first taken against the bank since it revealed the losses via those derivatives trades. In a statement issued last night, the Financial Services Authority said it was "continuing to conduct a formal enforcement investigation into the t...