JPMorgan Must Face Lawsuit, But Suit By Bank Employees Dismissed

JPMorgan Chase & Co. (NYSE:JPM) is required to face a lawsuit brought by shareholders accusing it of masking risk in the so-called “London Whale” trade, but three individual executives will not face the suit.

The London Whale trade occurred in 2012 when JPMorgan’s Chief Investment Office lost $6.2 billion on a bet in illiquid SWAPs interest rate markets.  When hedge funds learned the firm must exit the trade, liquidity dried up and they were forced to liquidate their position at a loss.

Two top executives and bank must answer to charges

US District Judge George Daniels in...