A former SEC crime fighter, who once worked on the case that led to the regulator's settlement with junk bond king Michael Milken, has been tasked with helping to manage JP Morgan’s predicament, following its billion-dollar trading losses.

As JP Morgan continues to face embarrassment, criticism and mounting losses from soured bets from its chief investment office in a trade that involved credit default swaps, the US bank has hired ex-Securities and Exchange Commission director of enforcement, William R McLucas.