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Is This The Email That Ended The Career Of JPM's Chief Risk Officer?

Tyler Durden's picture




 

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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Fri, 03/15/2013 - 12:12 | 3332663 achmachat
achmachat's picture

is this reason enough to assume that Blythe was also lying through her teeth during her infamous TV interview?

Fri, 03/15/2013 - 12:15 | 3332668 Seasmoke
Seasmoke's picture

Absolutely. And i remember everyone at ZH called her on it.

Fri, 03/15/2013 - 12:22 | 3332697 AlaricBalth
AlaricBalth's picture

 

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.

 

Fri, 03/15/2013 - 12:27 | 3332715 James_Cole
James_Cole's picture

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. 

Fri, 03/15/2013 - 13:20 | 3332877 JPM Hater001
JPM Hater001's picture

You guys aren't suggesting we jail someone are you?

Hippie radicals.

Fri, 03/15/2013 - 13:29 | 3332904 Karlus
Karlus's picture

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...

Fri, 03/15/2013 - 13:41 | 3332950 Freddie
Freddie's picture

Jail?  Guillotine.   For all the banksters and politicians aka Senators who support them.

Fri, 03/15/2013 - 14:08 | 3333050 Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

Step by step we go towards a full-blown revolution.  There will be blood.

Fri, 03/15/2013 - 13:47 | 3332983 game theory
game theory's picture

Jail is for poor people. Bankers are above the law.

Fri, 03/15/2013 - 13:28 | 3332899 Joe Davola
Joe Davola's picture

If only he'd started and ended the list with <air quote>

Fri, 03/15/2013 - 12:28 | 3332719 BKbroiler
BKbroiler's picture

well at least we have their email address now :)

Fri, 03/15/2013 - 15:00 | 3333230 YC2
YC2's picture

Kinda weird, but yeah

Fri, 03/15/2013 - 12:29 | 3332721 nope-1004
nope-1004's picture

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.

 

Fri, 03/15/2013 - 12:30 | 3332728 McMolotov
McMolotov's picture

Again, if it ain't someone lying about steroids in baseball, who gives a shit?

/sarc

Fri, 03/15/2013 - 13:14 | 3332860 ghengis86
ghengis86's picture

Did you need that sarc tag? Because that's the fucking truth and reality of the situation. Soooooo fucked up...

Fri, 03/15/2013 - 12:47 | 3332780 beaker
beaker's picture

How about a citizen's arrest?

Sat, 03/16/2013 - 01:22 | 3334588 mkhs
mkhs's picture

Why do people disparage vigilante justice?

Fri, 03/15/2013 - 12:47 | 3332782 mr1963
mr1963's picture

Every senator, congressman, potus, vpotus, etc. would have to comply, that law is toast.

Fri, 03/15/2013 - 12:15 | 3332670 DJ Happy Ending
DJ Happy Ending's picture

Risk? What's that?

Fri, 03/15/2013 - 12:39 | 3332758 Cognitive Dissonance
Cognitive Dissonance's picture

"Risk? What's that?"

"It's what everyone else takes when they do business with us." - Jamie Dimon

Fri, 03/15/2013 - 12:18 | 3332685 DoChenRollingBearing
DoChenRollingBearing's picture

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....

Fri, 03/15/2013 - 12:19 | 3332687 THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture

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.

Fri, 03/15/2013 - 12:14 | 3332667 Cdad
Cdad's picture

Sorry, that was obviously rhetorical.

LOL!  LOL! lolololol.....lol....lol....Cdad is jigglin'.....lololololol.

Fri, 03/15/2013 - 12:16 | 3332671 chunga
chunga's picture

Tyler honey, you're on fire today.

Fri, 03/15/2013 - 12:21 | 3332692 Rubicon
Rubicon's picture

She truly is!

Fri, 03/15/2013 - 13:44 | 3332967 Freddie
Freddie's picture

I bet the female Tyler has a whip and crop....oh never mind.

Fri, 03/15/2013 - 13:09 | 3332848 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

ZH = Pulitzer

Fri, 03/15/2013 - 14:38 | 3333162 Orly
Orly's picture

Yeah, that'll happen...when Krugman or Obama win the Nobel.

Oh...wait!

Fri, 03/15/2013 - 12:16 | 3332672 Rainman
Rainman's picture

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 !

Fri, 03/15/2013 - 12:23 | 3332703 Cdad
Cdad's picture

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.

Fri, 03/15/2013 - 12:57 | 3332809 cougar_w
cougar_w's picture

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.

Fri, 03/15/2013 - 14:00 | 3333024 Rogue Trooper
Rogue Trooper's picture

American Psycho by Bret Easton Ellis summed 'them' up perfectly.

Fri, 03/15/2013 - 15:02 | 3333231 Marco
Marco's picture

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.

Fri, 03/15/2013 - 19:25 | 3333835 lotsoffun
lotsoffun's picture

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.

 

Fri, 03/15/2013 - 13:32 | 3332915 Karlus
Karlus's picture

"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.

Fri, 03/15/2013 - 16:37 | 3333460 Muppet
Muppet's picture

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.

Fri, 03/15/2013 - 12:19 | 3332674 spooz
spooz's picture

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? 

Fri, 03/15/2013 - 12:23 | 3332706 Hippocratic Oaf
Hippocratic Oaf's picture

'does GAAP cover the shifty practices? '

 

Jesus fuckin' christ, man! What the fuck is 'generally accepted' any-fukin-more?

Fri, 03/15/2013 - 12:19 | 3332686 tony bonn
tony bonn's picture

you just have to love zh on days like this.....what other cia controlled media is discussing all of these details?

Fri, 03/15/2013 - 12:32 | 3332739 McMolotov
McMolotov's picture

If it isn't on CBS/ABC/NBC or Facebook, it didn't happen.

Fri, 03/15/2013 - 13:00 | 3332829 cougar_w
cougar_w's picture

ZH is CIA controlled? That would be a hoot.

Fri, 03/15/2013 - 12:21 | 3332693 hustler etiquette
hustler etiquette's picture

Sure does look like it

Fri, 03/15/2013 - 12:27 | 3332695 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

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.

Fri, 03/15/2013 - 12:27 | 3332717 outamyeffinway
outamyeffinway's picture

Or more importantly the naming convention. Easy enough I guess. SPAM! SPAM!

 

Fri, 03/15/2013 - 12:33 | 3332726 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

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.

Fri, 03/15/2013 - 12:23 | 3332705 otto skorzeny
otto skorzeny's picture

why do they need risk officers when everything they do is backstopped by the Fed?

Fri, 03/15/2013 - 12:34 | 3332743 McMolotov
McMolotov's picture

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.

Fri, 03/15/2013 - 12:27 | 3332708 Cdad
Cdad's picture

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!

Fri, 03/15/2013 - 12:51 | 3332801 Hippocratic Oaf
Hippocratic Oaf's picture

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

Fri, 03/15/2013 - 12:25 | 3332710 Comrade de Chaos
Comrade de Chaos's picture

"Mistakes, were made."

Fri, 03/15/2013 - 12:26 | 3332713 101 years and c...
101 years and counting's picture

i wonder if that is still jamie's email address?  everyone check!!!

Fri, 03/15/2013 - 12:28 | 3332723 Edward Fiatski
Edward Fiatski's picture

You DO NOT put a period (.) after a 1).

God damn nabs.

Fri, 03/15/2013 - 12:31 | 3332730 Downtoolong
Downtoolong's picture

"Because, when it's serious you...........", you already know the rest by now.

Fri, 03/15/2013 - 12:36 | 3332746 They Tried to S...
They Tried to Steal My Gold's picture

Jamie Fresh...... "That's why I'm richer than you"

Fri, 03/15/2013 - 12:37 | 3332751 Inthemix96
Inthemix96's picture

And we give these people far too much credit for being supposedly 'Clever',

Anyone of you lot ever left a paper trail, never mind a secured E-mail, electronic trail that has your fucking name on it?

These daft cunts THINK they be clever, fuck my 12 year old son knows better than to leave evidence as damning as this.  these daft cunts are PSYCOPATHS, who think and act they are ABOVE the law.

And up to now they are.

Till they aint.

Stupid fucking cunts.

Fri, 03/15/2013 - 12:46 | 3332774 SheepDog-One
SheepDog-One's picture

Yes it's VERY hard to believe they're actually so dumb as to communicate this kind of stuff thru email.

Fri, 03/15/2013 - 13:32 | 3332920 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

One might reasonably conclude that these parties are not acting in a manner that reflects any sort of fear of prosecution -- or even consequence.

But maybe it's just me...

Fri, 03/15/2013 - 13:39 | 3332942 Toolshed
Toolshed's picture

Exactly! It is not cleverness, or a lack thereof. It is simply a belief that they are superior beings, as in Supermen, and are completely fucking bulletproof! And worst of all, the DoJ seems to be intent on proving them right. Torches and pitchforks time is almost here. Finally.

Fri, 03/15/2013 - 14:51 | 3333201 trebuchet
trebuchet's picture

Why should Barry be prosecuted? he was expressing his thougts - i na free society - about what JPM execs should be saying......   surely we are not going to prosecute people for their thoughts on a subject....

/sarc off 

Fri, 03/15/2013 - 12:38 | 3332755 adr
adr's picture

Well, I'm looking forward to $4.50 gas by May and another record run-up in Nat Gas prices, real demand be damned. PERHAPS THE LOWER INVENTORY NUMBERS REFLECT THE DESIRE TO REDUCE PRODUCTION IN ORDER TO PREVENT THE OVERFLOW OF INVENTORY THAT LED TO THE PRICE COLLAPSE LAST YEAR, YOU ABSOLUTE IDIOTIC SPECULATIVE TRADING MOTHERFUCKERS!!!!!!! FUCK YOU AND THE BENZ YOU RODE IN!!!!!

It's painfully obvious that nobody in the government is going to do anything to take down any of the bankers. Ben is going to print to infinity as as long as every other central bank prints to infinity, the house of cards will just keep adding new floors.

The underlying economy continues to deteriorate, however considering at least 50% of the US population no longer participates in the productive portion of the economy, it might not matter.

I could hope to make some gains in the stock market, but the gains will be eaten up by inflation. 20% return, ha Nat Gas is up 25% in a few weeks, gasoline is also up 20%. Better to save my cash to help cover that cost instead of taking out of my pocket to invest. I could go all out and make really risky bets, but there is a greater chance of losing everything, considering the bets that pay off the most run contrary to the slow grind higher that Bernanke has engineered.

SO life just gets harder every day, income flat and costs rising. Unless I decide to leave the productive side of the economy and become a useless eater praising Comrade Obama and taking my monthly stipend as payment for my vote.

Maybe the collapse will come when Ben will have reduced the rate of return from the stock market to less than the return from people's savings. Or maybe 20% monthly gains will become the norm. But then we've entered Wiemar and Zim territory.

Fri, 03/15/2013 - 12:44 | 3332757 fuu
fuu's picture

Best and Brightest!

Oops Cdad already covered it.

Hahahah JPM uses Outlook.

Fri, 03/15/2013 - 12:42 | 3332763 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

I'm surprised Demon didn't conduct business on his other email address under the name Richard Tanner Hughes with the email naming convention as richard.t.hughes@jpmchase.com or richard.t.hughes@jpmorgan.com. Someone should pop some emails out to those address or similiarly named like rich.t.hughes just to see if they bounce or not.

Fri, 03/15/2013 - 12:43 | 3332766 ptoemmes
ptoemmes's picture

Juncker said, "When it becomes serious, you have to lie."

But really, JPM, all the time?

Fri, 03/15/2013 - 12:50 | 3332794 fonzannoon
fonzannoon's picture

did everyone buy the dip?

Fri, 03/15/2013 - 12:57 | 3332815 MsCreant
MsCreant's picture

There ain't enough chips in the world to eat that much dip.

Fri, 03/15/2013 - 13:38 | 3332938 dontgoforit
dontgoforit's picture

No; as luck would have it (at least for me) we sold.

Fri, 03/15/2013 - 13:10 | 3332849 Sambo
Sambo's picture

There is a simple reason for all this.....Mr Risk at jpm consumed a mind numbing mix of ....whatever these wall street sociopaths take.... at 5:05pm on 04.12.2012

Fri, 03/15/2013 - 13:29 | 3332905 dontgoforit
dontgoforit's picture

OK Justice Dept - where are you?  Justice?  Justice?  David Justice?  Justice Roberts?  Justice pustice.

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