JPMorgan Chase & Co. (NYSE:JPM): Current price $54.17
Two former JPMorgan Chase & Co employees are facing criminal charges in regards to the $6.2 billion trading loss of 2012, but this time the trader with the nickname “the London Whale” is not one of them. It now seems that Bruno Iksil, who is cooperating with United States prosecutors, opposed the efforts of his former colleagues Javier Martin-Artajo and Julien Grout to conceal the mounting losses, said court filings.
On Wednesday, Federal prosecutors in Manhattan charged Martin-Artajo and Grout — both employed at JPMorgan’s chief investment office in London — with wire fraud and a conspiracy to falsify books and records linked with the trading losses. The charges are the first to emerge from the Whale scandal and indicate that the two deliberately tried to cover up hundreds of millions of dollars in losses on trades in a portfolio of synthetic credit derivatives connected with corporate debt. However, since Martin-Artajo and Grout are European residents, it remains unclear when they might be arrested and brought to the United States to be formally arraigned.
Merck & Co. Inc. (NYSE:MRK): Current price $48.48
Questions regarding the health effects of Merck’s Zilmax feed additive are growing in the beef industry. On Tuesday, the firm unveiled a program to retrain and certify beef producers in administering the weight-adding drug to their cattle. This comes a week after Tyson Foods Inc. declared that it would no longer accept beef from Zilmax-fed cattle after it observed animals arriving at its slaughter facilities that had trouble walking or moving.
Merck’s animal health division said it would require cattle feeders that use Zilmax to undergo additional training as part of a five-phase plan to deal with increasing worries about possible negative effects of the drug.
E.I. DuPont de Nemours & Co. (NYSE:DD): Current price $59.32
DuPont has altered its bylaws to permit payouts to executives sacked in a takeover and to change the manner in which special meetings are conducted — days before an activist investor is expected to reveal a big position in the chemical manufacturer. On Wednesday, in a regulatory filing, Dupont said that Chairman and Chief Executive Ellen Kullman would receive three times her yearly salary and bonus, while other executives would get double their compensation if fired subsequent to a company takeover.
The modifications come after a July 17 CNBC report that Trian Fund Management LP, co-founded by the activist investor Nelson Peltz, has bought “a very big” stake in DuPont. The deadline for institutional investors to post second-quarter holdings is Wednesday.