THE MANAGER of the London trader who cost JP Morgan at least $6.2bn (£3.84bn) is being taken to court by the banking giant, court papers revealed yesterday.
The so-called London Whale’s derivative trades built up a huge and damaging position within the bank’s chief investment office, and dealt a major blow to the institution when they were revealed in May.
Bruno Iksil, the trader in question, no longer works for the bank and neither does his then-supervisor, Javier Martin-Artajo.
Martin-Artajo is now being sued by the bank, according to court papers seen yesterday by Bloomberg.
It is thought that JP Morgan is seeking to claw back the manager’s bonus payments.
JP Morgan declined to comment on the case.
Until the derivatives losses, JP Morgan had kept its reputation essentially untarnished since the start of the financial crisis.
Chief executive Jamie Dimon was forced to investigate the incident rapidly, a process which resulted in him claiming the Whale had been “harpooned.”