Ina Drew Throws Jamie Dimon Under The Bus

From the prepared remarks of Ina Drew, former JPM CIO:

• ... In January the Company’s independent Model Review Group, part of the corporate Risk Management organization, approved a new, and purportedly better and more accurate, value-at-risk (VaR) model for the synthetic credit book... Although I, as well as the Company’s senior management, was well aware that a new VaR model was pending, I had no involvement in the process of developing, requesting or approving the new model and no basis to personally assess the merits of either the new or old model.  
• ... It is also important to note that the Task Force Report itself lays out the critical factors – the flaws in the new VaR model and the deceptive conduct by members of the London team – that undermined my management and my oversight of the book.
• ... It appears that CIO Risk Management failed to properly understand and assess the risks in the book, and that CIO Finance failed to properly review the position valuations recorded by the traders.
• ... Though I did not (and do not) believe I bore personal responsibility for the losses in the synthetic credit book, in late April I began to consider whether, for the good of JPMorgan Chase, I should step down and make it easier for the Company to move beyond these issues. In the wake of the May 10 disclosures I approached Mr. Dimon and told him that I thought it would be best for the Company if I stepped down. He reluctantly agreed, and shortly thereafter I  submitted my retirement letter. Similarly, although I did not (and do not) believe that I engaged in any misconduct, I offered to give up a significant amount of  my recent JPMorgan Chase compensation, which I have done, in recognition of the size of the losses and my position as head of the business. Although asset-liability management, by its nature, involves regular ups and downs in both investment and hedging books, I had never before experienced a situation like this one.
• ... I have since come to learn – based on the Company’s public statements in July 2012 and Task Force Report in January of this year – that valuations for many of the book’s positions were inflated and not calculated or reported in good faith; that the original version of the second quarter scenario analyses reflected much higher projected losses and was specifically re-done before it was sent to me so as to reflect lower projected losses; and that some members of the London team participated in or condoned such conduct and hid from me important information regarding the true risks in the book. I have also since come to learn – based on the same public statements of the Company – that the new VaR model was flawed and significantly understated the true risks in the book. Needless to say, I had no knowledge of these things at the time.

And the piece de resistance:

• Since my departure I have learned of the deceptive conduct by members of the London team, and I was, and remain, deeply disappointed and saddened to learn of such conduct and the extent to which the London team let me, and the Company, down.

Maybe it is time to call back Jamie "This is why I am richer than you" Dimon?

Comments

[illyia]

Thanks for never letting up, ZH.

[ihedgemyhedges]

I'm sure Jamie Dimon is shaking in his Ferragamo shoes right now.  And I bet you that Hermes tie is feeling kind of tight right now.  May even have to remove his Brioni coat as I'm sure it's getting hot.....

[Joe Davola]

That was a lot of words to say "Jamie, you'll be hearing from my lawyer to renegotiate my severance".

[Badabing]

“You’re taking this way too personal, this is business not personal. You know what you have to do is put a gun to the side of his head and BADABING!”

Sonny/ The Godfather

[NotApplicable]

Okay, from what I've read here, it looks like she threw the London office under the bus, not Dimon.

While I realize he is absolutely responsible for driving this mess, I don't see it in the above testimony.

[Rainman]

Behold another banker scum who is shocked there was gambling going on in the house.

[bania]

Lean In, Ina Drew.

[camaro68ss]

When Dimond jumps from the top of the JPM building tommorw, then its time to panic.

[jcaz]

LOL- what a dipshit....   Hey Ina, lemme get this straight- your job was to "oversee and manage the book",  yet you cry foul and say it's not YOUR fault when the kids play in the sandbox???     So what- EXACTLY- did you think you were being paid MAJOR bucks for?   Mimi make up tips?

Cry me a river, bitch- you're going down with the rest of them, it's called ACCOUNTABILITY.

[Richard Chesler]

Ms Drew said she “relied” on Mr Macris and Mr Martin-Artajo. The men, who live overseas, were beyond the Senate panel’s jurisdiction, and declined invitations to testify.

Fuck you muppets!

[Manthong]

Was that Ina anf Blythe leaving the hearing?

http://i.imgur.com/4QsJ3ry.jpg

[Pinto Currency]

This all looks like a limited hang out instead of dealing with the real issue which is gold and silver manipulation.

[James_Cole]

I have also since come to learn – based on the same public statements of the Company –that the new VaR model was flawed and significantly understated the true risks in the book. Needless to say, I had no knowledge of these things at the time.

Yeah except they all approved and implemented it without testing it against the old model. Dimon's words "I approve"

Clearly in the doc they had no interest in mitigating risk, they just needed to get their risk down to shield their craziness from regulators. 

And they also failed to disclose changing the var model until well after they reported their new numbers.

Lots of holes!

[Sauk Leader]

I think this could best be summed up as "chaos and porous risk controls." Pack it up our work here is done.

[knukles]

's not my fucking fault...

_{^{(y'all had yer chance to gimme a much bigger severance package, assholes)}}

[skipjack]

Two words:

Sarbanes Oxley

[mkhs]

Only if it will not hurt the economy, peon.

[OutLookingIn]

Honor among thieves?

There is none.

Ina was supposed to take one for the team.

Instead, she gave it back and then some!

Blood in the water.

The sharks are circling.

[Imminent Crucible]

Ina Drew Throws Jamie Dimon Under The Bus

Well, it's about time someone let the air out of that mendacious bastard. I'm just surprised it's Miss Piggy.

[DJ Happy Ending]

Is it just me or does Ina look like Carol?

http://www.youtube.com/watch?v=twsxiZ-jh8E

[Theosebes Goodfellow]

"I'd fight Ina Drew."

[centerline]

I have to say that I am really, really surprised that one of these a-holes hasn't had an accident yet.  There are so many people out there whose businesses... prosperity... lives... have been ruined by the "priviledged" who have bent the laws to amass fortunes.

[papaclop]

I SO wish he would. The only difference between him and Madoff is sophistication. Crash JP Morgan; buy silver. Plus it will help you prosper.

[papaclop]

I SO wish he would. The only difference between him and Madoff is sophistication. Crash JP Morgan; buy silver. Plus it will help you prosper.

[Go Tribe]

"I approached Mr. Dimon and told him that I thought it would be best for the Company if I stepped down. He reluctantly agreed..."

More like:  I got the fuck outa Dodge, because these bastards were going down.

[Mad Mohel]

Or like:

Look bitch we need someone to take the heat for this and off themselves. We chose you, plus we got tired of you walking around here looking like Ms. Piggy. Now beat it. 

- J. Dimon

[otto skorzeny]

if she was Ima Jew she would still have a job

[Dealyer Turdin]

Damn, caught myself trying not to snigger.

[Imminent Crucible]

"He reluctantly agreed."

That part is true. Dimon was reluctant to see her leave the company, because once she was on the outside, he couldn't control her mouth any more.

[Keynesian Mess]

Yeah, I wonder how much of Jamie's "I-got-more-than-you" she'll get for throwing London under the bus, falling on her sword and shielding New York?  Somebody should grow a pair and send them all to Guantanamo for re-training.

[aint no fortuna...]

and JPM stock cuts it's losses on the news

[Nothing To See Here]

"although I did not (and do not) believe that I engaged in any misconduct, I offered to give up a significant amount of  my recent JPMorgan Chase compensation, which I have done, in recognition of the size of the losses and my position as head of the business."

Duh sorry but I'm not buying this salad. Translation, she's as guilty as the others, but trying to escape the guillotine by being the first out.

[MassDecep]

Snap back to reality hedgers. Nothing will happen when the fox is guarding the henhouse. Won't even make Main stream news...

[swissaustrian]

I'm looking forward to the day Blythe Masters is sitting in Ina Drew's chair.

[Frozen IcQb]

I'm looking forward to the day Blythe Masters is sitting in another type of chair.

[kaiserhoff]

OK, I understand that you don't like being the goat, but what is a Chief Investment Officer in a behemoth like JPM if not a compliance/quality control nanny?  Screw your latest model.  What about the most basic controls like position limits, capital limits, weekly reports from every unit on what they are doing and risk/reward data?

This is way above my pay grade, but some of us know the answers.  There was no external clearing broker, so entire levels of over-sight and security never had a chance to kick in.  Also, one trend that is obvious from the Tylers' reporting is that this place is being run to maximize leverage and circumvent regulation.  Hence the option selling to the moon within one year, when it does not create a capital requirement.

As the rednecks say, what goes around, comes around.

(Placed way out of sequence, not in response to the comment above.  Something hinky is happening to the order que.  Anyone else see black helicopters?)

[NotApplicable]

I'm curious, where did you think you were posting this comment?

[kaiserhoff]

On the original thread, under Joe above.

Happened once last week, but I see some stuff clearly out of sequence on many threads.  Probably just the volume of readers creating mild chaos.  A good thing really.

[ceilidh_trail]

I'm noticing more and more that the up/down arrows are not responding. Anyone else getting an error message?

[kaiserhoff]

If someone imports text from another source (writes it in word and copies) that will often overlap the arrows, and inactivate them.

CD had it working once where he could get green arrows but not red.  Clever boy.  Like the most zen among us cares about arrows.

... or maybe ilene just doesn't like you;)

[Hippocratic Oaf]

She swims with the fishes now my friend

[_ConanTheLibert...]

she should watch out for them pigs

[CheapBastard]

They didn't deposit enough in her secret swiss bank acccount prob.

[fonzannoon]

thank god the banks have fixed all this

[ekm]

Typical elite infighting.

Since this shit started last year, I strongly believe two opposing factions inside or outside JPM are fighting against each other.

They want Dimon's head and I think they will get it. It seems to me that the group against Dimon have the senators in their pocket.

[Cursive]

@ekm

I think you are right.  Dimon has served his usefulness.  He slipped up last year on the Whale Trade and, after his boastful "Fortress Balance Sheet" gaffe and all-around acting like he is a demi-god (understandable given how he is treated), it looks like he is prime for the slaughter (think Marlon Brando in "Apocalypse Now," nee Heart of Darkness).

[ekm]

Reading marketwatch headlines.

John McCain got involved bashing Dimon.

I think he's done.

[Edward Fiatski]

Oh, dear.

Hang her on the Blackfriars bridge, I say!

[Cdad]

Is the bus okay?

[TheFourthStooge-ing]

The bus is fine, although the tire treads are severely caked with dog shit.