SEC drops case against ex-JPMorgan traders over ‘London Whale’

  • The SEC dropped its civil lawsuit against two former JPMorgan Chase traders on Friday.
  • The traders were accused of trying to hide some of the bank’s $6.2 billion of losses tied to the 2012 “London Whale” scandal.
  • The decision came four weeks after the U.S. Department of Justice abandoned its criminal case against both men.

The top U.S. securities regulator on Friday dropped its civil lawsuit accusing two former JPMorgan Chase traders of trying to hide some of the bank’s $6.2 billion of losses tied to the 2012 “London Whale” scandal.

The decision by the U.S. Securities and Exchange Commission to dismiss charges against Javier Martin-Artajo and Julien Grout came four weeks after the U.S. Department of Justice abandoned its criminal case against both men, who have denied wrongdoing.

Prosecutors said their case ran into trouble after testimony from Bruno Iksil, a cooperating witness who had been dubbed the London Whale, proved unreliable.

Iksil has publicly shifted blame for the losses toward upper JPMorgan management, including Chief Executive Officer Jamie Dimon, who at first called the matter a “tempest in a teapot.”

Read on.

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