JPMorgan Investors Blast Risk Policy In 'London Whale' Suit

Law360, New York (August 13, 2013, 3:27 PM EDT) -- Investors suing JPMorgan Chase & Co. over its $6.2 billion “London Whale” loss on Monday lambasted the bank’s attempt to toss the consolidated class action, arguing that JPMorgan lied about its main risk management unit, which was actually a high-risk, unregulated trading desk.

The putative class contends that JPMorgan’s Chief Investment Office, which purportedly managed risk for the company as a whole and housed infamous trader Bruno Iksil, was secretly engaged in proprietary trading for its own account, taking massive positions in exotic securities and went...
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