Ex-JPMorgan Executive Macris Challenges London Whale Report

Achilles Macris, a former JPMorgan Chase & Co. executive in Europe, will appeal findings by the U.K. markets watchdog that criticizes his actions after losses caused by Bruno Iksil, the trader known as the London Whale.

Macris was “deprived of the opportunity of responding” to the Financial Conduct Authority, a spokesman for his lawyers at Clifford Chance LLP said in an e-mailed statement today. Macris, who led the international Chief Investment Office, said the findings from September were “made in error” and he will challenge them in a U.K. tribunal.

The FCA’s “assertions fail to take proper account of the actions he took and mischaracterize his dealings with the Authority at the relevant time,” the spokesman, Michael Osborne, said in the statement.

Jamie Dimon, the chief executive officer of the New York-based bank, characterized the $6.2 billion loss last year as “the stupidest and most embarrassing situation I have ever been a part of.” The bad bets led to an earnings restatement, a U.S. Senate subcommittee hearing and $920 million in penalties from regulators including the Securities and Exchange Commission and the FCA.

In July 2012, JPMorgan said it would restate its first-quarter net revenue by $660 million because it wasn’t confident that the valuations of the bank’s derivatives trades were accurate.

‘Deliberately Misled’

The “conduct of CIO London management deliberately misled the authority about the situation” according to the FCA’s notice on the fine, which is published on the agency’s website. Macris wasn’t mentioned by name in the FCA’s findings following its investigation into Iksil, who was known as the London Whale because the size of his bets.

Lara Joseph, a spokeswoman for the FCA, declined to immediately comment. Brian Marchiony, a spokesman for JPMorgan, declined to comment on Macris.

Iksil’s former boss, Javier Martin-Artajo, and junior trader Julien Grout were indicted in the U.S. in September on five charges each, including securities fraud and conspiracy, for allegedly seeking to hide losses as they began to mount. Prosecutors have said Iksil, who wasn’t charged, is cooperating with them.

Martin-Artajo and Grout are not in the U.S. and haven’t returned to face the charges.