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...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes