J.P. Morgan to Accept $700+ Million Fine Over 'London Whale' Fiasco

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The Wall Street Journal Monday afternoon broke the news that a host of regulators are expected to hit J.P. Morgan Chase (JPM) with fines of at least $700 million over its handling of the "London whale" trading loss case in 2012. Reporting from CNBC pegs the fines at closer to $800 million.

The SEC, Office of the Comptroller of the Currency, the Federal Reserve and other agencies have found that the bank lacked adequate internal controls and monitoring of its derivatives traders. It was in derivatives trading that Bruno Iksil made -- and then, with some help, attempted to cover up -- the massive bad bets that cost J.P. Morgan Chase $6 billion. But this settlement is related to charges brought against two other employees: Javier Martin-Artajo, Iksil's supervisor, and Julien Grout, who worked for Iksil.

As the Journal explained:

U.S. prosecutors last month filed criminal charges against the two former traders, Javier Martin-Artajo and Julien Grout, with four counts of conspiracy, wire fraud, faking books and records and causing J.P. Morgan to make "false and misleading" statements in two securities filings in 2012. The two men hid hundreds of millions of dollars in losses, prosecutors alleged.


An official announcement could come as soon as next week, according to sources knowledgeable about the case.
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