St. Louis Police Retirement System filed a lawsuit against Chairman and CEO Jamie Dimon and other executives at J.P. Morgan Chase & Co. for breaches of their fiduciary duties related to the bank's chief investment office.
The lawsuit, filed by the $650 million pension fund on Monday in New York County's Supreme Court, charges that J.P. Morgan Chase & Co. converted its chief investment office, “originally intended to reduce risk for the firm, into a largely unsupervised proprietary trading operation that accumulated billions of dollars in high-risk trades,” according to the filing.
The pension fund, which owns 39,000 shares in J.P. Morgan Chase & Co., filed the suit due to the pension fund's losses incurred as part of the chief investment office's trading loss of $6.25 billion in May 2012.
It is the latest lawsuit filed by a pension fund because of losses from trades by the chief investment office and Bruno Iksil, known as “the London Whale.”
The $76.4 billion Ohio Public Employees Retirement System, $64.3 billion Ohio State Teachers' Retirement System, $58.4 billion Oregon Public Employees Retirement Fund, $11.3 billion Arkansas Teacher Retirement System, $11.2 billion Ohio School Employees Retirement System and Sweden's $14 billion AP7 fund were named lead plaintiffs last August in a separate lawsuit related to the trading losses.
Steve Olish, executive director of the St. Louis pension fund, did not return a phone call seeking further information by press time. J.P. Morgan Chase spokesman Darin Oduyoye declined to comment.