A published report says federal authorities plan to arrest two former JPMorgan Chase & Co. employees on suspicion that they tried to conceal the size of the investment bank's $6 billion trading loss last year. The New York Times reported today that the arrests of Javier Martin-Artajo and Julien Grout are expected to occur in London in coming days, citing unnamed persons briefed on the matter. Martin-Artajo oversaw JPMorgan's trading strategy in London, while Grout recorded the value of the soured investments
The $6 billion loss hinged on large wagers made by the traders and was first blamed on JPMorgan trader Bruno Iksil, known as "the London Whale." Some investigators now believe Iksil was blamed unfairly, and Iksil has struck a cooperation agreement with the government. But it's not clear whether he could still face other charges. As for Martin-Artaio and Grout, a federal grand jury voted to indict both on criminal fraud charges. The Times notes that both suspects could be extradited to the US under an agreement with Britain.