JPMorgan Indicates Traders May Have Been Rogue

A review of the JPMorgan's Chief Investment Office found that employees may have hid losses.

Bloomberg reports that the firm has said that 'recently discovered information raises questions about the integrity of the trader marks, and suggests that certain individuals may have been seeking to avoid showing the full amount of the losses being incurred in the portfolio during the first quarter'.

Chief Executive Officer Jamie Dimon is seeking to restore confidence in the bank after initially calling reports on the CIO’s trades a 'complete tempest in a teapot' as the bank released first-quarter earnings in April. The bank today said it found a material weakness in internal controls for that period.

The firm has said it has lost $4.4bn within CIO, up from the $2bn loss it initially reported in May.

Reuters has reported that Bruno Iksil, the JPMorgan trader known as the 'London Whale', has left the bank, a person familiar with the situation said, in the wake of a trading scandal likely to have cost JPMorgan between $4bn and $6bn.

Achilles Macris, who headed CIO in Europe, and a third colleague, Martin Javier-Artajo, were also no longer listed in the company's internal employment database as of Thursday, the Wall Street Journal reported earlier on Friday.