London Whale Arrests Coming

According to DealBook, US officials will seek the arrests of two JPMorgan employees based in London for covering up the $6 billion loss…

Those trades soured last year, racking up steep losses for the bank. JPMorgan, which initially disclosed the problem last May, has since announced that the losses reached more than $6 billion.

After more than a year of gathering evidence about the losses, federal prosecutors and the F.B.I. in Manhattan have concluded that the two employees understated the value of their trades to hide the problem from executives in New York. Poring over internal e-mails and phone recordings that shine a light on how the employees valued the trades, authorities came to believe that Mr. Martin-Artajo directed Mr. Grout to falsify internal records.

This is new.

Source:

U.S. Said to Plan to Arrest Pair in Big Bank Loss (DealBook)