Former JPMorgan executive challenges UK's London Whale report

Reuters

LONDON, Oct 21 (Reuters) - A former JPMorgan Chase & Co executive in Europe is appealing findings by Britain'sfinancial watchdog that criticised his actions in connectionwith the "London Whale" scandal.

Achilles Macris, who is appealing, ran the London divisionof JPMorgan's Chief Investment Office, where Bruno Iksil,nicknamed "the London Whale" for the size of the his derivativestrades, stacked up huge losses, more than $6.2 billion at lastcount.

JPMorgan agreed to pay $920 million in penalties last monthto the U.S. Federal Reserve, the U.S. Securities and ExchangeCommission, the U.S. Comptroller of the Currency and the UK'sFinancial Conduct Authority (FCA) over the trading scandal.

The FCA notice of its fine, totalling 137.6 million pounds,did not mention Macris by name but said that "by virtue of theconduct of the CIO London management" JPMorgan had deliberatelymisled the regulator.

A spokesman for Macris said he had not been given a properopportunity by the FCA to respond to the criticisms before theywere published.

"Mr. Macris strenuously denies the assertions made by theauthority in the final notice as being factually wrong. Thoseassertions fail to take proper account of the actions he tookand mischaracterise his dealings with the authority at therelevant time," said the spokesman in an e-mailed statement.

FCA spokeswoman Lara Joseph was not immediately available tocomment, nor was a JPMorgan spokesman.

Jamie Dimon, chief executive of the New York-based bank,characterized the $6.2 billion loss last year as "the stupidestand most embarrassing situation I have ever been a part of."

Iksil's former boss, Javier Martin-Artajo, and junior traderJulien Grout were indicted in the United States in September onfive charges each, including securities fraud and conspiracy,for seeking to hide losses as they began to mount. Iksil has notbeen criminally charged and has been cooperating with U.S.authorities.

Martin-Artajo and Grout are not in the United States andhaven't returned to face the charges. Macris was Martin-Artajo'ssupervisor.

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