Lost $6 billion trader J. P. Morgan Chase called himself a scapegoat

A trader who earned the nickname London whale, since 2012 was silent, however, now wrote a letter to The Wall Street Journal, which was published on 23 February. He stated that the transaction, which J. P. Morgan Chase lost more than $6 billion, were authorized by the management of the Bank. He considers himself a scapegoat. Ixil sure the story was exaggerated by his enemies among the traders who dramatise the loss of the Bank.

According to Exile, the Bank itself and the media incorrectly interpreted its role in the events of 2012. “As a result, I was named the main accused of this history,” said the former trader.

Earlier, the management of J. P. Morgan Chase denied his involvement in erroneous actions on the exchange.

In may 2012 U.S. Bank suffered a serious loss from trade in derivative credit instruments in London. The reason was the strategy of hedging undertaken by the investment division, which proved to be ineffective and risky. Later the Bank said that the culprit of the incident was Ixil who on their own initiative blunders.

19 September 2013 authorities in the US and the UK demanded from J. P. Morgan Chase to pay $920 million “J. P. Morgan failed to adequately monitor the activities of its traders, who open too large positions in complex derivatives portfolio, and then tried to hide massive losses on these positions. When the Bank’s top managers knew about the problem, they are unable to adequately assess its scale and to report back to the regulators and investors,” — stated in the message of the Commission on securities and stock exchanges of the USA.