Breaking reports indicate the London Whale, JPM’s ‘Achilles Heel’ and two other members of JPM’s CIO team face imminent CRIMINAL CHARGES over JPM’s CIO derivatives debacle. It wouldn’t surprise us if Mr. Dimon himself convinced authorities to bring charges simply to further extricate himself from the implications of the alleged criminal falsification of JPM’s financial statements (which Mr. Dimon would have signed off on).
Federal authorities are using taped phone conversations to build criminal cases related to the multibillion-dollar trading loss at JPMorgan Chase, focusing on calls in which employees openly discussed how to value the troubled bets in a favorable way.
Investigators are looking into the actions of four people who previously worked for the team based in London responsible for the $6 billion loss, according to officials briefed on the case. The Federal Bureau of Investigation could make some arrests in the next several months, said one person who spoke on the condition of anonymity because the inquiry was ongoing.
The phone recordings, which were turned over to authorities by JPMorgan, have helped focus the investigation, the officials said.
The investigation centers around FALSE financial statements submitted to regulators:
Authorities are examining how some traders in the chief investment office influenced market prices as their bets began to sour. Investigators are also looking into whether records were falsified to hide the problems from executives in New York. Based on those records, JPMorgan submitted inaccurate financial statements to regulators, another area of focus for investigators.
While the CEO himself would have signed off on those false financial statements, the investigation is reportedly limited 4 individuals on the CIO team, including the London Whale and JPM’s Achilles Heel themselves:
Attention is centered on four people: Javier Martin-Artajo, a manager who oversaw the trading strategy from the bank’s London offices; Bruno Iksil, the trader known as the London Whale for placing the outsize bet; Achilles Macris, the executive in charge of the international chief investment office; and a low-level trader, Julien Grout, who worked for Mr. Iksil and was responsible for marking the trading book.
The stench is so rotten that even the head of the entire CIO office is being thrown under the bus to keep the scrutiny off of the real big-wigs such as Dimon.
Mr. Presidential cufflinks himself obviously has nothing to worry about:
The scope of the inquiry suggests that the problems were isolated to a handful of executives and traders in an overseas division, and did not reflect a fundamental weakness with the bank’s culture and leadership.
Right…the losses obviously had nothing to do with the senior executives that signed off on the directional positions and strategies as well as financial statements. Funny how emails and phone conversations from the CEO and the CIO team simply must not exist.