Is This The Email That Ended The Career Of JPM's Chief Risk Officer?
On October 2, 2012, news hit that Barry Zubrow, JPM's Chief Risk Officer from November 2007 to January 2012 (in other words, key supervisor of the risk onboarded by the CIO, aka JPM's prop trading desk, for the biggest part of its existence), and then briefly head of corporate and regulatory affairs, would retire from JPMorgan. As Bloomberg reported then, "Now is the right time in my life" to retire, Zubrow, 59, wrote to colleagues in a note today. "We have learned from the mistakes of our recent trading losses."
We wonder, if the time was "right" for Zubrow's retirement because the firm realized that the Senate was in possession of the following email sent from Zubrow on April 12, a day before the first fateful Q1 earnings preview conference call in which Jamie Dimon, responding to media reports of Iksil's blow up, said the whole situation was a "tempest in a teapot", in which the Chief Risk Officer essentially told the firm's executives: Braunstein and Dimon, to lie to the public and shareholders (in light of the full Senate report which reveals that all three statements "suggested" by Mr. Zubrow were lies)?
If that is the case, we wonder: why is Mr. Zubrow not being prosecuted?
...
Sorry, that was obviously rhetorical.
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is this reason enough to assume that Blythe was also lying through her teeth during her infamous TV interview?
Absolutely. And i remember everyone at ZH called her on it.
Yesterday I cited the US Code which should be utilized for potential indictments of JPM execs. Title 18, United States Code, Section 1001 makes it a crime to: 1) knowingly and willfully; 2) make any materially false, fictitious or fraudulent statement or representation; 3) in any matter within the jurisdiction of the executive, legislative or judicial branch of the United States.
Another which is applicable would be 18 USC § 4 - Misprision of felony
Whoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both. This offense, however, requires active concealment of a known felony rather than merely failing to report it.
Securities fraud allllllll over this one. And not just Zubrow, Dimon did the same thing. He said on conference call it was a hedge, said it publically well after documented evidence that he knew otherwise. How's he get around that?
He can claim he didn't see the e-mails, but he can't claim he didn't know it was a long position and said on the record it was a hedge.
You guys aren't suggesting we jail someone are you?
Hippie radicals.
Dimon's get out of jail card (haha) is because his chief risk guy sent this. While the CEO is captain of the ship, this email goes a long way for getting him out of the soup.
I wouldnt have put it past Dimon telling this guy to send the email.
Issues like these are usually not email items, they are phone or F2F items. You only send emails to leave a very obvious trail...
Jail? Guillotine. For all the banksters and politicians aka Senators who support them.
Step by step we go towards a full-blown revolution. There will be blood.
Jail is for poor people. Bankers are above the law.
If only he'd started and ended the list with <air quote>
well at least we have their email address now :)
Kinda weird, but yeah
Problem is the Fed, Treasury, and President lie just as much, if not more. The entire system is corrupt from the top down, so the only prosecution that will ever come out of this has to come from the bottom up. Look at the blind eye shown toward Corzine.
Don't hold your breath for Foodstamp Barry to do anything useful. They guy is fucking useless.
Again, if it ain't someone lying about steroids in baseball, who gives a shit?
/sarc
Did you need that sarc tag? Because that's the fucking truth and reality of the situation. Soooooo fucked up...
How about a citizen's arrest?
Why do people disparage vigilante justice?
Every senator, congressman, potus, vpotus, etc. would have to comply, that law is toast.
Risk? What's that?
"Risk? What's that?"
"It's what everyone else takes when they do business with us." - Jamie Dimon
achmachat
Probably that was at least A REASON why she was lying. But, as long as you are a holder of physical gold & silver in non-trivial amounts, then you will be a winner. Thanks, Blythe! Thanks, Jamie! You too can defend your financial health by not playing their game.
Of course there are MANY losers, via inflation and higher taxes, "socialist losses"... Jamie & Blythe will do just fine.
Note that .gov dos not lose either....
The media is told to lie, bankers lie, government lie, your local senator lies, the ADMINISTRATION lie everytime they hold a press conference, BERNANKE lies all day..This is like breathing.
LOL! LOL! lolololol.....lol....lol....Cdad is jigglin'.....lololololol.
Tyler honey, you're on fire today.
She truly is!
I bet the female Tyler has a whip and crop....oh never mind.
ZH = Pulitzer
Yeah, that'll happen...when Krugman or Obama win the Nobel.
Oh...wait!
I am shocked these knuckleheads still communicate through emails and electronic mechanisms. Conspiracy is best carried out in the parking garage at 1 a.m. when not a creature is stirring. Overpaid idiots !
As I have said for years, and in relation to the long standing myth that our financial giants are populated with "the best and the brightest the nation has to offer"...nothing could be farther from the truth. Big banks are populated by those folks who excel in being devoid of all ethics, and they are held in their positions, and despite massive failures and frauds, by equally ethically challenged politicians.
These guys are idiots...and generally their actions are driven by ego...the very hallmark of ignorance.
Some are idiot savants; they know what they know really well, but otherwise are stupid as stumps. Let them out of their kiddy pool and they drown. A lot of guys getting busted right now (or in the near future) are functional idiots of this kind.
Many more are spoiled rich -- someone inside the business once called them infants -- who never knew anything of importance except that they were destined for greatness. They act like idiots but are probably just criminals. Mafia types, they'll rip your throat out if you cross them. I put Dimon in this camp.
However many are brilliant sociopaths. They seldom make mistakes, and if they do always pin the blame on someone else. They get the largest slice of any corpse, and bury the bones in the deepest closet. Those guys don't use email, they don't even use the phone. They really do conduct business 2 minutes at a time in the men's room of a swanky bar they all frequent. And of these men -- who are probably most of the financial underworld -- you will know nothing, see nothing, hear nothing. They have been running this show for 1,000 years and they will probably still be running it 1,000 years from now.
This is why the rest of us will never know what hit us, and why in our blind range we will seek revenge on idiots and infants.
To no avail.
American Psycho by Bret Easton Ellis summed 'them' up perfectly.
Occasionally revolutions get out of their hands, King Louis and the Tsar thought themselves untouchable as well ... it's not like they are impossible to find, they live in the same style as the old aristocracy, it's not like it's impossible to determine their assets, everything not owned by anyone identifiable.
umm. cdad - i know a good bunch of them for many, many years. they aren't idiots and many of them are very smart.
and their best qualities are - they know how to lie effectively, they know how to intimidate, they know how manipulate.
as much as i don't like 'humanity' - most people are basically pretty good. which is why it is so easy for them as big cats
to walk down to the watering hole and just feed.
SHEEPDOGONE ran a post 2 years ago how all this works. it was in my fun opinion outstanding. i believe he spent some
time in security/law efforcement type situation. dead on. there really exists a small percentage of people that
are wolves and simply have no concern for anyone else, or the consequences. currently, banks are their best bet
to make large material gains. (at other times it was more likely, military, religion, corporations)
but they are sociopaths and at a certain point, they get to think they are on the throne and can get away with anything.
they let the guard down. that said, any of my emails seen, i'm toast. and i know that. but i'm a minnow.
the question is..... as far as they are concerned, regulators and justice at this point all work for them.
i suspect it's true unless our 'lebron/dancing with/kim/what's on the tv' crowd wake up. and i kind of don't think that's happening.
anytime soon.
"I am shocked these knuckleheads still communicate through emails and electronic mechanisms."
They usually are not unless you are getting something on the record. I can almost guarantee this was a series of phone calls before it becomes a mail.
You dont get to be chief risk guy unless you know this. It was deliberate unless the chief risk guy didnt have phone privledges with Dimon. And I doubt that very much.
I question this email, particularily the overly-simplified email addresses. Its hard for me to believe that any CEO has such a simple email address, given the amount of spam and unvetted emails it would receieve. Something seems odd about this.
JPM's Michael Cavanaugh says the outside accountants (Price Waterhouse) were in on the decision to change the method of marking profits to reduce losses on the books during the Whale trading, and went along with it. Will PW be interviewed, could we see another Arthur Anderson implosion or does GAAP cover the shifty practices?
'does GAAP cover the shifty practices? '
Jesus fuckin' christ, man! What the fuck is 'generally accepted' any-fukin-more?
you just have to love zh on days like this.....what other cia controlled media is discussing all of these details?
If it isn't on CBS/ABC/NBC or Facebook, it didn't happen.
ZH is CIA controlled? That would be a hoot.
Sure does look like it
Well if nothing else we have dimon's email address. Time for those creative types to start emailing him some ponzi scheme nigerian prince scams emails.....
LSL needs to tell Jamie directly how he really feels in that eloquent way he has with words.
Or more importantly the naming convention. Easy enough I guess. SPAM! SPAM!
You should only lead the horses to water. I suspect the hacktivists will be banging hard on their servers today and over the weekend and on Monday Der Cyber Furher will up the volume how we need to protect our financial infrastructure against cyber terrorism in the name of national security.
why do they need risk officers when everything they do is backstopped by the Fed?
Kinda like "Why do we need to work and pay taxes if the Fed can just print?" It's all part of maintaining the illusion.
Free John Corzine! Free Jamie Dimon!! Free Barry Zubrow!!! Free Blankfien, Mozillow, Ken Lewis........____________________!!!!!!!
Laughing stock....the entire criminal syndicate known as Wall Street....the US department of nonJustice....the US Senate.....all of them in all their glory...right before our very eyes. But....but confidence is returning, and our recovery is at hand. LOL! What a joke...a joke told for the benefit of ____________________________?
Free Eric Holder!
Hear ya, dad
I sell a 70 year old woman a double-B rated 10 year bond and FINRA is up my ass with a blow-torch.
These fucks get free board, lunch and prostitues along with a wrist slap $10mm fine
"Mistakes, were made."