Two former JPMorgan Chase employees are expected to be arrested for their role in the so-called "London Whale" scandal that lost the bank roughly $6.2 billion last year, The New York Times reports. The arrest of the employees, Javier Martin-Artajo and Julien Grout, will reportedly take place in London.
Not among those expected to be charged is the London Whale himself, one Bruno Iksil, who built up the massive positions in the derivatives market that eventually cost the bank billions, according to a Reuters report published Thursday. According to a later report, Iksil will have to play a key role in any arrests related to the scandal.
On Thursday, Reuters reported that JPMorgan, the largest bank in the country by assets, was close to a settlement with the Securities and Exchange Commission over the scandal in which the bank would admit fault, a relative rarity on Wall Street.
The Federal Bureau of Investigation and federal prosecutors are separately investigating whether company employees underrepresented the scandal's potential fallout to investors in a 2012 meeting, according to a separate New York Times report.
The company's chief executive officer, Jamie Dimon, early on described the scandal as a "tempest in a teapot," an opinion he later described as "dead wrong," according to the Wall Street Journal. But Dimon has maintained that he did not purposefully deceive anyone with his initial comments. "There was no hiding, there was no lying, there was no bullshitting, period," he said of the scandal In June.
The New York Times first reported the news of the potential arrests:
Breaking News: Authorities Plan to Arrest 2 Former JPMorgan Employees
— The New York Times (@nytimes) August 9, 2013
This is a developing story.