Ex-JPMorgan Trader Victory in Identity Suit Appealed by U.K. FCA

  • 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.

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