A fourth London-based JPMorgan Chase trader is under scrutiny in the investigation by US authorities into the bank’s nearly $6bn (£3bn) trading loss, according to reports.
Julien Grout, a trader who joined JPMorgan Chase (JPM.N) in 2009, is drawing attention because he worked in the bank’s Chief Investment Office and reported to Bruno Iksil, the French credit trader who is a central figure in the federal probe, Reuters claimed, citing two sources familiar with the situation.
US authorities are trying to determine whether traders in the bank’s London office, including Iksil, took steps to try to hide some of the losses the bank was incurring on a series of complex derivatives trades. In the trading community in London, Iksil became known as the London Whale because of the large positions he and his colleagues were taking on.
Grout is still working for JPMorgan, according to a bank spokeswoman. He has declined to comment, she said.