Achilles Macris, the former head of the London branch of JPMorgan Chase Bank’s Chief Investment Office, agreed to pay a fine of just under GBP 793,000 (US $1.15 million) to the UK Financial Conduct Authority for his alleged failure to be forthright with the Financial Services Authority (the FCA’s predecessor) during the early stages of the so-called “London Whale” trading incident in early 2012. This incident—which involved losses incurred by the Chief Investment Office’s trading of credit default swaps and tranches (principally by Bruno Iksil)—ultimately cost the bank more than US $6 billion in trading losses. According to FCA, from March 28, 2012, to April 29, 2012, Mr. Macris was the main contact for FSA at JPMorgan for the Chief Investment Office. Despite at least two formal meetings with FSA during this time, including one in person, Mr. Macris never advised FSA of the “full extent of the difficulties” the Chief Investment Office’s CDS portfolio was experiencing, alleged FCA. As a result, charged the FCA, “Mr. Macris failed to deal with the Authority in an open and cooperative way,” thus violating FCA requirements. JP Morgan settled a complaint brought by the Commodity Futures Trading Commission in October 2013 related to its London Whale trading incident by agreeing to pay a fine of US $100 million. The CFTC’s action against JPMorgan marked its first use of its then new anti-manipulation authority under the Dodd Frank Wall Street Reform and Consumer Protection Act to bring actions for so-called manipulative devices or artifices. (Click here for further background in the article, “US CFTC Files and Settles Charges against JP Morgan Chase Bank Employing Its New Anti-Manipulation Authority Related to Certain of the Bank's London Whale Trading,” in the October 21, 2013 edition of Bridging the Week.)