'London Whale' scandal: ex-JPMorgan banker held
Javier Martin-Artajo arrested in Spain over alleged role in bank’s £3.9bn loss
JAVIER MARTIN-ARTAJO, the former JPMorgan manager charged by US prosecutors with attempting to conceal £3.9bn worth of trading losses, has been arrested in Madrid.
The 49-year-old was the supervisor of Bruno Iskil, the London-based derivatives trader whose vast money market bets earned him the nickname the "London Whale". Prosecutors say Martin-Artajo put pressure on Iskil to stop him reporting the massive trading losses.
Martin-Artajo, who oversaw trading strategy at the bank’s London investment office, handed himself in to Spanish police. He was released on condition he returns to court every 15 days, according to The Times.
Earlier this month US prosecutors filed criminal charges against Martin-Artajo and fellow JPMorgan banker Julien Grout over their alleged role in the so-called London Whale scandal. They are accused of deliberately concealing "hundreds of millions of dollars" in losses between March and May last year, as well as knowingly making "false and misleading" statements.
In an email to a colleague obtained by investigtators, Iskil wrote: "I don't know where he [Martin-Artajo] wants to stop, but it's idiotic." Iskil has not been charged after striking an immunity deal in June with prosecutors in exchange for his co-operation.
Martin-Artajo faces up to 25 years in jail if he is found guilty. He told a Spanish court he is not willing to be extradited to America and it is unlikely he will face a US court as Madrid rarely grants requests to send its citizens to be tried in the US. ·