Another risk officer in JPMorgan ‘Whale’ trade retains lawyer

NEW YORK, Tue Aug 21, 2012 – Another JPMorgan Chase & Co. risk manager, who worked for a division that lost at least $5.8 billion on a series of complex derivatives trades, has hired a lawyer in connection with probes into the so-called “London Whale” trading debacle, according to sources familiar with the investigations.

Federal authorities are investigating an allegation that some of the bank’s traders in London may have tried to hide hefty losses, and JPMorgan is conducting an internal probe.

Peter Weiland, who was head of risk at JPMorgan’s CIO from late 2008 until the beginning of 2012, is one of at least six people associated with the case who have hired attorneys. He has been reassigned by the bank to a new risk control team at the overhauled Chief Investment Office where the loss occurred.

Weiland, who is based in New York, did not return requests for comment, and his lawyer declined to comment.

Of the six people who have hired attorneys, all but Weiland have either been fired by the bank or left on their own accord.

It is not clear how much interest federal authorities have in Weiland over an incident that has proved to be a major embarrassment for JPMorgan CEO Jamie Dimon. There is no indication that authorities believe Weiland has done anything wrong.

It is not unusual for traders to retain counsel in such high-profile probes, in part to shield themselves when critical discussions occur about possible criminal or civil wrongdoing.