semantics

  • 02 Apr 2014 at 5:19 PM

JP Morgan Fugutive Open To Dropping Fugitive Status

A lawyer for a former JPMorgan Chase & Co trader accused of helping to hide trading losses tied to a $6.2 billion financial scandal said on Wednesday his client was open to leaving France to voluntarily face U.S. criminal charges. Julien Grout, the former trader, is accused of participating in a conspiracy to hide losses within JPMorgan’s Chief Investment Office in London by marking positions in a credit derivatives portfolio at inflated prices. He and another one-time trader at the bank, Javier Martin-Artajo, are considered fugitives by the U.S. government for not coming to the United States to face trial over charges stemming from the so-called London Whale scandal. But at a hearing in federal court in New York, Marc Weinstein, a lawyer for Grout, told U.S. District Judge George Daniels that talks were under way with prosecutors about a bail package that would enable Grout, a French citizen, to come to the United States. [Reuters]

The hedge funds that LightSquared owes money to, notably Dish Network Chairman Charlie Ergen’s personal hedge fund, are quite eager to force LightSquared to accept Dish’s bid for its assets. This would have the salutary effect of (a) ensuring that they all make a huge profit on debt they paid pennies for, (b) humiliating and possibly bankrupting Phil Falcone, and (c) giving Dish the extra spectrum it wants (while also making Charlie Ergen even richer).

So imagine their surprise when LightSquared named one of the many people who have had rough dealings with Charlie Ergen in the past to the special committee that will handle the auction of the aforementioned assets. Well, they have told a bankruptcy judge, this kind of stacking the deck simply won’t do. It might keep Charlie Ergen’s careful stacking of the deck from working. Read more »

He did get off on one of the seven counts against him, so… Read more »

As reported yesterday, a source close to Sanjay Santhanam, Galleon’s head of risk management, told Dealbreaker that Santhanam recently expressed fears the firm “could be closed by Friday,” due to a massive amount of redemptions. A representative of the fund, however, takes issue with the potential expiration date offered by San-San, pointing out that, technically, the death would be much more slower and painful, and take us through the New Year.

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