Martin-Artajo Seeks More Time for Whale Report ResponseBen Moshinsky
Javier Martin-Artajo, the former JPMorgan Chase & Co. banker accused of helping to hide trading losses of $6.2 billion, asked a tribunal for more time to challenge a U.K. regulator’s report on the losses caused by so-called London Whale.
Martin-Artajo, who oversaw synthetic credit trading at the bank’s chief investment office in London, missed the Oct. 17 deadline to respond formally to the Financial Conduct Authority’s report because he wanted to build a good relationship with the regulator and was considering requesting a judicial review of the case, his lawyer, Jonathan Hall, told the tribunal.
The FCA fined JPMorgan 138 million pounds ($234.5 million) in September and found that management deliberately misled the watchdog in reporting losses caused by Bruno Iksil, the Frenchman who became known as the London Whale. Martin-Artajo wasn’t mentioned by name in the regulator’s report on the fine, and wasn’t accused of wrongdoing by the agency.
“He didn’t pull the trigger” in seeking to challenge the report, Hall said. “It’s not a disproportionate step for the tribunal to grant him more time.”
Martin-Artajo didn’t appear at the London hearing and is fighting extradition from Spain to the U.S., where he has been indicted for engaging in a securities fraud to hide London Whale-related losses.
The U.S. Securities and Exchange Commission said in a related lawsuit that Martin-Artajo and Julien Grout, a trader who worked for him, engaged in a scheme to enhance the portfolio’s apparent performance and curry favor with their supervisors.