US won't prosecute ex-JPMorgan trader Iksil: Source

In this Oct. 10, 2008 file photo, a man walks into a JPMorgan Chase & Co. building in New York's financial district. The ex-JPMorgan Chase trader nicknamed "the London Whale" for his huge derivatives losses has reached a deal to avoid US prosecut
In this Oct. 10, 2008 file photo, a man walks into a JPMorgan Chase & Co. building in New York's financial district. The ex-JPMorgan Chase trader nicknamed "the London Whale" for his huge derivatives losses has reached a deal to avoid US prosecution, a source familiar with the situation said on Tuesday. -- FILE PHOTO: AP

NEW YORK (AFP) - The ex-JPMorgan Chase trader nicknamed "the London Whale" for his huge derivatives losses has reached a deal to avoid US prosecution, a source familiar with the situation said on Tuesday.

Bruno Iksil, who along with others has been blamed for big bets that resulted in a US$6.2 billion (S$7.8 billion) loss for the bank in 2012, reached the deal after agreeing to testify in the case, according to the source.

But criminal indictments against two other ex-JPMorgan traders could come later this week in the case, with regulators focused on whether some in the bank sought to cover up the extent of the losses.

Iksil, a French citizen, cooperated with prosectors who determined after reviewing email correspondence and other evidence not to prosecute him, the source told AFP.

Iksil also is not expected to be named in civil charges by the Securities and Exchange Commission and Commodities Futures Trading Commission, the source said.

JPMorgan chief executive Jamie Dimon and other company brass have apologised for the London whale debacle, depicting it as a major blunder that resulted from poor strategy and execution.

But US prosecutors have been probing whether some London officials within JPMorgan understated the losses as they were mounting, misleading senior company officials in New York.

Two other former JPMorgan employees, Julien Grout and Javier Martin-Artajo, have been named in recent days in the US press as facing likely criminal indictment as soon as this week.

Attorneys for both men said on Tuesday their clients have done nothing wrong.