FX round up: Dealer costs JPM Chase $6 million
A former FX salesman at JPMorgan Chase in New York has been arrested and charged with wire fraud. Terrence Gumbs apparently hid an unauthorized trade, which cost the bank about $6 million in losses, according to a criminal complaint unsealed in New York.
According to court documents, prosecutors have alleged that Gumbs sold €385 million on behalf of a client. Unfortunately, he did so without the client’s permission. His action was apparently an attempt to recoup earlier losses he had racked up in unauthorized trading. If convicted, Gumbs faces up to 20 years’ imprisonment.