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Ex-JPMorgan trader fined £800k over 'London Whale' scandal

City watchdog fines former head of JP Morgan's international chief investment office £793,000 over the 'London Whale' trading scandal.

Ex-JPMorgan trader fined £800k over 'London Whale' scandal

The Financial Conduct Authority (FCA) has fined a former JPMorgan trader £793,000 for failing to co-operate with the regulator as part of its ‘London Whale’ investigation.

Achilles Macris was head of JP organ’s chief investment office (CIO) and managed a number of portfolios including the synthetic credit portfolio.

The FCA said it fined him over his lack of co-operation with the regulator during the so called 'London Whale’ trades. The trades, made by Bruno Iksil, led to $6.2 billion (£4.2 billion) of trading losses for the bank.

At the time of trades Macris was the main contact with the FCA’s predecessor, the Financial Services Authority, (FSA) for the team that Iksil worked in.

According to the FCA, Between 28 March 2012 and 29 April 2012, Macris failed to inform the FSA about concerns with the synthetic credit portfolio engineered by Iksil despite being responsible for it, among a range of other portfolios.

FCA director of enforcement and market oversight Mark Steward said failing to communicate the problems could have stopped the regulator from making better decisions.

‘A failure to communicate openly with us can affect the well-running of markets and cause unnecessary harm to investors, especially in times of financial stress or crisis,' said Mark Steward, FCA director of enforcement and market oversight.

'Regulators need open communication with firms so that better decisions can be made sooner. Macris should have explained the position more squarely especially when he knew the synthetic credit portfolio’s losses had worsened.’

In September 2013, the FCA fined JPMorgan £573 million over its failings in the London Whale trades.

Last June, the FCA was told by the Court of Appeal it should have given Macris the right to make representations over its notice to JPMorgan Chase about the London Whale trades.

The FCA has challenged this in the Supreme Court but there has not been a hearing in the case yet.

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Investment Trust Watch: the hidden gem in UK Income

by Gavin Lumsden on Oct 21, 2016 at 17:18

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