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Ina Drew Throws Jamie Dimon Under The Bus

Submitted by Tyler Durden on 03/15/2013 10:06 -0400

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?

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Fri, 03/15/2013 - 11:26 | 3332517 buzzsaw99

She was a risk manager who didn't ask questions, that's why she had the job. It pays well to do nothing, ask the SEC.

Fri, 03/15/2013 - 11:15 | 3332471 smacker

Ina Drew would have us believe that her worst offence is of breathtaking incompetence to do her job, hence quickly quitting and sacrificing herself when things went south.

She may be telling the truth, but the question of what did she know and when did she know it needs to be answered. Having thrown the London Team under a bus, maybe that'll bring forth some more evidence to show that she was actually up to her neck in it. Or not.

Fri, 03/15/2013 - 11:18 | 3332482 unplugged

I call Bullshit. This "'fessin'-up" was made for public consumption. Its just another program running in 'The System of Control'

Fri, 03/15/2013 - 12:11 | 3332659 Freewheelin Franklin

Up is down. Black is white. Cats and dogs living together.....

https://www.youtube.com/watch?v=O3ZOKDmorj0

Fri, 03/15/2013 - 11:20 | 3332492 NoWayJose

Looks like Dimons are NOT a girls best friend...

Fri, 03/15/2013 - 11:26 | 3332519 El Gordo

She's a classic example of why women should never be allowed into positions of responsibility in any business. According to her story, she is a victim of her subordinates lies, but the truth is she actually never looked to see for herself what was going on. That leads me to believe that she would not have been able to understand what was going on even if she saw it in person. The Peter Principle at its finest.

Fri, 03/15/2013 - 11:52 | 3332594 falak pema

your remark is down that street to which Halle Berry pointed when she remarked on TV that the best place to wear perfume for a woman was between her thighs.

With perfume like that she would have been queen of JPM and have Jamie eating out of her hand...his derivative hatch wide open. Peter woould have lost his principle in perfumed fest binge.

Not saying that lady Ina with her looks could have avoided been thrown under a gold plated bus, with or without perfume; vengeance now as her only resort, fatal perfume of panicky Jezebel.

Fri, 03/15/2013 - 12:26 | 3332714 MsCreant

Give me a fucking break. Men are responsible for this shit storm, there are not very many women in this game percentage wise. Lots of men have claimed the same shit (I didn't knoooow, don't let me take it up the ass in jaaaail [Corzine]). Don't get me wrong she is responsible too, but if you got rid of all the women, you would not get rid of the problem.

Troll on little man, troll on.

Fri, 03/15/2013 - 12:36 | 3332749 Vooter

Drinking alone again tonight, El Gordo?

Fri, 03/15/2013 - 12:53 | 3332806 Colonial Intent

Women create life, men destroy it, its just how we are, men think short term, women think long term, men are individualists, women are groupists(?), etc etc

Fri, 03/15/2013 - 14:43 | 3333173 Joseph Jones

Colonial,

Did you omit the requisite "/sarc off" tag? Serious?

Feinstein, Michelle "kill-every-Muslim" Bachmann, Pelosi "life givers?" Kidding, right? Feinstein (jew) and Pelosi (Romanist, i.e. cryptic jew, jew sycophant, jew by any other name) conjure up more war revenues any other politicians on the face of the earth.

"Those who hate me love death."

Fri, 03/15/2013 - 14:57 | 3333213 Colonial Intent

Thats why god created transexuals.

Fri, 03/15/2013 - 15:21 | 3333269 Cathartes Aura

lol that you even believe you know what went down / goes down, based in the scripted "testimony" of any of these sociopaths - "testimony" that is simply part of the long-term scripts they present to the "public" incrementally..

and huge LOL that you believe "women" are any different to "men" when working the system.

the system defines the participants. and the system was created by men.

el oh el.

Fri, 03/15/2013 - 11:30 | 3332536 NoWayJose

What we need is for Dimon to be the richest man in jail for the next 10 years...

Fri, 03/15/2013 - 11:45 | 3332558 rqb1

ZH is the new Washington Post.

Fri, 03/15/2013 - 12:27 | 3332718 MsCreant

Why insult ZH?

Fri, 03/15/2013 - 11:44 | 3332574 loveyajimbo

Dimon, the colon polyp... is safe for the next 4 years, via Prez Chakka Obunga Bunga. After that, a pardon. We need citizens to take direct action... wouldn't it be terrible to read about Jamie receiving a vicious beating sometime?? Yes, it would be deplorable... but I could forgive...

Fri, 03/15/2013 - 11:59 | 3332621 Dewey Cheatum Howe

The only truely interesting tidbit is the fact she blamed the London crew, I wonder how that ties in with JPM silver market manipulation practices. This all has to be interconnected somehow...

Fri, 03/15/2013 - 12:07 | 3332651 Freewheelin Franklin

I hope she married well.

Fri, 03/15/2013 - 12:10 | 3332657 occupant

I once asked my father how he could justify being in charge of his own company. He told me that he could do everyones job from entry level to the top and when he couldn't he would not be the boss. This is the problem in corporations: Leader are picked based on group think. When you approach mid level to top level management you realize that they are clueless. They cannot fix any problems because they have not worked their way throught the company. It is a popularity contest where you take credit for any good idea from the underlings and network with similar companies on how they do things. Their is no original thought or creativity. As for Ms. Drew she got lazy and depended on others to tell her what she should have been able to figure out on her own. Thirty years experience should have given her the experience to smell a rat.

Fri, 03/15/2013 - 12:11 | 3332661 little buddy bu...

do you like your whale grilled or flattened by the bus?

Fri, 03/15/2013 - 12:17 | 3332683 Joseph Jones

Why y'all hatin' on dem Jewz agin? (Dimon) What r'yall? 'buncha Nazis?

/sarc off

Fri, 03/15/2013 - 12:23 | 3332702 spooz

Tweaking the mark to market calculation is perfectly okay, according to Ina Drew, and Price Waterhouse went along with it, according to Michael Cavanaugh. New GAAP.

Fri, 03/15/2013 - 12:29 | 3332722 NuYawkFrankie