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article imageU.S. plans to arrest 2 former JPMorgan employees over $6B loss

By John Simon Ritchie     Aug 10, 2013 in Business
New York - Authorities are planning to arrest two former JPMorgan Chase employees suspected of masking the size of a multi-billion-dollar trading loss.
Javier Martin-Artajo, a manager who oversaw the trading strategy from London, and Julien Grout, a low-level trader responsible for recording the value of the soured bets, are facing a possible extradition under British authorities in the coming days for masking a 6 billion dollar trading loss in 2012. The loss came from outsized wagers from the bank's chief investment office in London, using derivatives to bet on large corporations like American Airlines.
These wagers completely tanked last year, racking up a steep $6 billion loss for JPMorgan Chase. After almost a year in investigating, federal prosecutors and the F.B.I. have decided the pair intentionally misrepresented the losses by over $400 million to hide the information from executives in New York.
Since the release of this information, the bank overhauled its control and has fired all employees involved in the bet as well as commissioned an internal investigation into their trades.
Representatives for the F.B.I. and the United States Attorney's office in Manhattan have declined to comment, however Douglas Braunstein, then chief financial officer of the bank has said, "We questioned the integrity of those trader marks."
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