JPMorgan's "London Whale" speaks up, says debacle was not his fault

JPMorgan Chase & Co. former trader cries foul for being called the "London Whale." He said that he was not the one responsible for the $6.2 billion losses in 2012.

Frenchman Bruno Iksil explained in a letter sent to media, that he was merely following the trading strategy repeatedly instructed by the senior management in the bank's Chief Investment Office (CIO). He said that being tagged as "London Whale" makes it seem like he was solely responsible for the losses.

"My role was to execute a trading strategy that had been initiated, approved, mandated and monitored by the CIO's senior management," he wrote.

The letter has since been verified by Iksil's attorneys, Jonathan New and Jonathan Barr, while JPMorgan declined to comment, according to Bloomberg.

He said that he repeatedly warned superiors in 2011 and 2012 if they will continue with the trading strategy instructed to him. In 2011, he said that he met New York officials and described the lack of relevant RWA figures and the risk of the revised trading strategy pressed into him. He insisted that he became the escapegoat for his superiors when he was singled out "for no good reason" in 2012, Telegraph reported.

"I have always acted in good faith both in the markets and for my employer," he said.

The billion dollar debacle in 2012 prompted government investigation to examine what happened. Since then, more than $900 million regulatory sanctions were suffered by the bank, as the New York-based bank reported that it happened because of lapses and internal oversight in risk management.

Since then, Iksil left the bank and has not been prosecuted after reaching an agreement with U.S. authorities to testify against traders, Javier Martin-Artajo and Julien Grout, for allegedly hiding the extent of losses. Both defendants live in Europe and did not appear to answer charges in the U.S., Reuters reported.

Iksil joined the CIO in 2005 where he became the chief trader for the credit-derivatives book in 2007.

Tags

JPMorgan, London Whale scandal, London Whale debacle, JPMorgan Chase & Co, Hedge Fund

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