Bloomberg News reports that Richard Lissack, Grout’s lawyer, told the London court Tuesday that the decision by the Financial Conduct Authority was 'irrational and unlawful'. The FCA dropped its probe into Grout because of pending U.S. charges, Lissack said.
JPMorgan agreed in September to pay about $920m to settle U.S. and U.K. investigations into the losses stemming from Bruno Iksil, the Frenchman who became known as the London Whale for the size of his positions. The U.S. also filed criminal charges against Grout and Javier Martin-Artajo, who oversaw synthetic credit trading at the bank’s chief investment office in London.
'The next stage in Mr. Grout’s investigation would have been the issuing of a preliminary investigation report by the FCA addressing the specific allegations against him which, importantly, would be Mr. Grout’s first opportunity to fully understand the case against him and to respond to it', lawyers for Grout said in court documents.
The FCA report into the trading loss at JPMorgan has drawn objections from at least three of the New York-based bank’s former employees.
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