Ex-JPMorgan Trader Victory in Identity Suit Appealed by U.K. FCAby
Julien Grout successfully sued U.K. regulator this month
FCA appealing ruling Grout was identifiable in bank settlement
The U.K. Financial Conduct Authority will appeal a ruling that it improperly identified a former JPMorgan Chase & Co. trader involved in the London Whale scandal in a penalty notice against the bank.
The FCA got the go-ahead earlier this month to appeal its case against Julien Grout, who worked under the so-called London Whale Bruno Iksil, according to court documents. While the claim hasn’t been filed, a spokesman for the regulator confirmed the agency’s plans.
On July 7, Grout became the latest banker to win a suit against the FCA over improper identification in settlements after a judge ruled he was identifiable in a 138 million-pound ($181 million) sanction notice against JPMorgan. The regulator is obliged to give a person the chance to respond to allegations before publishing a notice if they’re recognizable. To avoid this, the FCA uses monikers such as "Trader A" to hide their identities.
The FCA lost a landmark appeal over the issue last year against a colleague of Grout’s, Achilles Macris, who managed Iksil at JPMorgan. The Macris case is scheduled to go before the Supreme Court in October.
JPMorgan was fined more than $1 billion by global regulators in 2013 after Iksil incurred $6.2 billion in losses.
Lawyers for Grout didn’t immediately respond to a request for comment.