JPMorgan Chase & Co. sued the executive responsible forsupervising Bruno Iksil, the trader nicknamed the London Whale formarket-moving wagers at the division responsible for a $6.2 billiontrading loss.

Javier Martin-Artajo, Iksil's boss in the chief investmentoffice, is a defendant in a London lawsuit filed Oct. 22 by thebank and made public today. The court filings didn't reveal anydetails of the complaint. Both men have left the bank.

Kate Haywood, a spokeswoman for the New York-based bank,declined to comment on the litigation by e-mail. Greg Campbell,Martin-Artajo's lawyer, also declined to comment.

JPMorgan disclosed trading losses in May after what ChiefExecutive Officer Jamie Dimon said were “egregious” failures tomanage flawed positions on synthetic credit securities. The bank isstill recovering from those bets, the losses on which had risen to$6.2 billion through the first nine months of 2012 and mayincrease, the bank has said.

JPMorgan ousted managers responsible for the group's loss andsaid it would claw back their pay after an internal probe foundtraders may have intentionally tried to hide the problem. Thecompany didn't name the managers. Iksil, Martin-Artajo and formerEurope CIO head Achilles Macris were responsible for overseeing thetrades.

The internal investigation by JPMorgan found that Martin- Artajoencouraged Iksil to put higher values on his trades than they wouldhave fetched on the open market, the Wall Street Journal reportedin August.

JPMorgan is facing regulatory scrutiny and criminal probes overthe CIO group's trading as well as U.S. lawsuits from pension fundsclaiming they lost as much as $52 million because of itsactivities. The unit was pushed by Dimon to make bigger and riskierbets with the bank's money in the years leading up to the losses,according to former employees.

The botched bets spawned management changes and dismissals,beginning with Chief Investment Officer Ina Drew, who retired fourdays after the loss was disclosed on May 10. Barry Zubrow, who hadoverseen JPMorgan's risk management function during the period,will retire at the end of this year, he said Oct. 5.

The case is: JP Morgan Chase & Co v. Mr Javier Martin-Artajo, High Court of Justice, Queen's Bench Division,HQ12X04391

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