Jpmorgan Fined $920 Million For ‘london Whale’

British police said Friday they have arrested eight men after a gang stole ??1.3 million (1.5 million euros, $2.09 million) from Barclays bank by taking control of a branch computer system.AFP/File LONDON (AFP) British police said Friday they have arrested eight men after a gang stole ??1.3 million (1.5 million euros, $2.09 million) from Barclays bank by taking control of a branch computer system. The men, aged between 24 and 47, were arrested on Thursday and Friday morning on allegations of conspiracy to steal from Barclays and conspiracy to defraud British banks. They are accused of a theft in April, when a man purporting to be an IT engineer arrived at a Barclays branch in north London saying he was there to fix the computers. He then attached a keyboard, video and mouse (KVM) device with a 3G router to one of the computers, according to a statement from the Metropolitan Police. Such devices are routinely used by people in business to work remotely on their office computer systems, but it allowed the gang to remotely transfer money into their bank accounts. “Those responsible for this offence are significant players within a sophisticated and determined organised criminal network, who used considerable technical abilities and traditional criminal know-how to infiltrate and exploit secure banking systems,” said Detective Inspector Mark Raymond of the Central e-Crime Unit. Barclays recovered “a significant amount” of the money stolen, police said, but the arrests are the first in the five-month investigation into the crime. Officers searched a number of addresses across London and Essex, east of the capital, and seized cash, jewellery, drugs, “thousands of credit cards” and personal data, the statement said. One central London premises searched was described by detectives as the “control” centre of the operation. Police foiled a similar plot against Santander last week, arresting 12 men accused to trying to take control of a computer in a branch in London’s financial district. Four men were later charged with conspiracy to steal.


19 To find out more about Facebook commenting please read the Conversation Guidelines and FAQs JPMorgan fined $920 million for ‘London whale’ Kevin McCoy, USA TODAY 5:24 p.m. EDT September 19, 2013 Bank seeks to put 2012 embarrassment behind it by reaching settlements with four regulators at once. People in lobby of JPMorgan Chase’s New York City headquarters in 2012 file photo (Photo: Mark Lenihan, AP) Bank lost $6.2 billion on failed London whale trading strategy JPMorgan admits violating securities laws, having inadequate accounting controls Criminal investigation and CFTC civil probe continuing SHARE 347 CONNECT 88 TWEET 19 COMMENTEMAILMORE JPMorgan Chase admitted wrongdoing and was fined roughly $920 million Thursday for its “London whale” trading debacle as the U.S.-based global bank settled investigations by four oversight agencies. The settlements stopped short of assessing blame against any top executives at the nation’s largest bank and JPMorgan still faces at least two continuing investigations. The rare admission of fault and one of the largest bank fines in history focus on an early 2012 episode in which the bank’s London-based traders amassed large and risky investment positions in an effort to avoid losses in a credit portfolio. The positions were so big they drew attention from other firms’ traders, who dubbed Bruno Iksil, the chief JPMorgan trader involved, “the London whale.” The bank initially asserted that the trades, which ultimately racked up an estimated $6.2 billion in losses, had been a hedge against risk. But the strategy instead morphed into proprietary trading for the bank’s benefit partly funded with federally insured deposits. In trying to move past the incident, JPMorgan publicly acknowledged that it had violated federal securities laws and conceded that the losses occurred against a backdrop of deficient accounting controls. The bank also acknowledged that senior management knew that London traders were using a valuation system designed to minimize the size of the losses. JPMorgan failed to keep watch over its traders as they overvalued a very complex portfolio to hide massive losses. SEC official George Canellos The settlements require improvements in internal oversight by the bank’s board of directors, steps to remedy “unsafe and unsound” banking practices, plus upgraded audit functions. “JPMorgan failed to keep watch over its traders as they overvalued a very complex portfolio to hide massive losses,”said George Canellos, co-director of the enforcement division at the Securities and Exchange Commission, one of the regulators involved in the settlements. “While grappling with how to fix its internal control breakdowns, JPMorgan’s senior management broke a cardinal rule of corporate governance and deprived its board of critical information it needed to fully assess the company’s problems and determine whether accurate and reliable information was being disclosed to investors and regulators.” Investigators echoed a scathing Senate report that earlier this year concluded JPMorgan had kept bank regulators in the dark about the losses by withholding important information.

London Fashion Week: From fairytale gowns to bright, structured looks, there’s something for everyone

Bright looks at the Paul Smith show during London Fashion Week.

Earlier, designer Alice Temperley took her luxury line Temperley London up a notch with a fairytale collection of sweeping gowns in gentle pink, blush, lilac, mint and white. Stuart C. Wilson/Getty Images Bright looks at the Paul Smith show during London Fashion Week. There were long dresses embroidered with hand-cut silk flowers and with lace and crystals, gowns printed with a pattern of purple orchids and lace created out of the patterns of trailing leaves. “It’s about transporting you into another mood. We all live such normal lives, with work, it’s nice to have fantasy clothes,” the designer told AFP backstage after the show. Samir Hussein/Getty Images Cara Delevingne hits the runway for TopShops Unique fashion show in London on Sunday. The label recently appointed a new chief executive, Ulrik Garde Due, who will use his experience at Burberry and Celine to promote it as a luxury lifestyle brand. “Now we’ve got the (everyday) Alice line, we’ve got a good business, we don’t have to be so commercial with the runway. We can be more creative,” Temperley said. Tim P. Whitby/Getty Images A playful look from Greek designer Mary Katrantzous London Fashion Week show on Sunday. At the other end of the market, fashion chain Topshop unveiled its latest Unique collection in a tent in Regent’s Park, staging a “Heat Rave” filled with all the best bits of summer. Under the gaze of chief executive Philip Green, model Kate Moss and US Vogue editor Anna Wintour, the models sported loose sun dresses, rucksacks packed for the beach and slip-on mules as they walked along the grass floor. There were ethnic patterns and vibrant colours reflecting the blue of the sky and sea, while a V-necked white dress was adorned with mirrors to reflect the glittering of the sun.