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JPM "Retires" Ina Drew, Appoints Former LTCM Trader And Chairman Of Treasury Borrowing Advisory Committee As Replacement

Tyler Durden's picture


As reported yesterday, here it is officially:


Good bye Ina: we are sure that you will voluntarily claw back your $15 million bonus from 2011 one day ahead of the JPM shareholder meeting.

Now... Matt Zames... Matt Zames... where have we heard that name before... OH YES: he just happens to be the Chairman of the Treasury Borrowing Advisory Committee, aka the TBAC, aka the Superommittee that Really Runs America. The Matt Zames who... "previously worked at hedge fund Long-Term Capital Management LP, may have benefited as the collapse of Lehman Brothers Holdings Inc. and JPMorgan’s takeover of Bear Stearns Cos. left companies and hedge funds with fewer trading partners in the private derivatives markets." In other words, the US Treasury is telegraphing it is now firmly behind JPM.

Jamie Dimon just pulled out the trump card: we survive or the Treasury gets it.

And some more on Matt Zames: 

Matt Zames is one of the contenders to take over from Jamie Dimon at JP Morgan. Why? Because he makes money for the bank. That's why. Or rather, the traders who work under him on the bank's OTC fixed income derivatives trading desk which has made money when the rest of the bank was going close to the wall. If your desk is the only one making serious money, you get to call a lot of the shots, and Zames, an ex-LTCM employee was promoted rapidly in the last 5 years to the executive committee.


Bully for him, but with power comes responsibility and Zames may come under a lot of scrutiny because of a court filing from the trustee charged with recovering money for Mr Madoff’s victims.


John Hogan, a senior risk officer at JPMorgan’s investment bank and a member of the company’s executive committee, voiced concerns about Mr Madoff’s firm to colleagues in 2007, according to a new version of the 114-page complaint. The allegation is part of a $6.4bn lawsuit filed against the bank by the trustee, Irving Picard. Mr Hogan is said to have learnt of Mr Madoff’s Ponzi scheme Zames.


“For whatever it’s worth, I am sitting at lunch with Matt Zames who just told me that there is a well-known cloud over the head of Madoff and that his returns are speculated to be part of a Ponzi scheme,” Mr Hogan allegedly said on June 15 2007, nearly 18 months before Mr Madoff’s Ponzi scheme was revealed.


Of course Zames' concerns went no further. How much he really knew, how much he disclosed and how much he acted on his suspicions to his own benefit may have a significant bearing on his career.

As for those who are in the Mons Venus vicinity tomorrow, and are bored during the day, this one's for you:


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Mon, 05/14/2012 - 09:14 | 2423294 Capitalist
Capitalist's picture

Fortress balance sheet my ass.

Mon, 05/14/2012 - 09:15 | 2423310 maxmad
maxmad's picture

Retired as put out into pasture?  or retired as in underground?

Mon, 05/14/2012 - 09:22 | 2423326 SilverTree
SilverTree's picture
transitive verb 1 : to bond or vulcanize a new tread to the prepared surface of (a worn tire) 2 : to make over as if new <retread an old plot>
Mon, 05/14/2012 - 09:29 | 2423355 SilverTree
SilverTree's picture

JPM down -2.25% Before the bell. :-)

Mon, 05/14/2012 - 09:34 | 2423361 GetZeeGold
GetZeeGold's picture



The Eric Holder Corruption Report:


Number of subjects retired : 12.4e15

Number of subjects relocated to France : 1

Number of subjects prosecuted : 0

Amount of campain money received : We're still counting it.



Mon, 05/14/2012 - 09:34 | 2423365 toady
toady's picture

Sleeps with the fishes

Mon, 05/14/2012 - 10:15 | 2423533 falak pema
falak pema's picture

Jamie Brasi? sleeps with the fishes? Or is it Luca Dimon?

Mon, 05/14/2012 - 10:13 | 2423525 falak pema
falak pema's picture

fortress balance sheet behind the fiat jet spray; if it runs out of hot air...

Mon, 05/14/2012 - 09:15 | 2423296 SilverTree
SilverTree's picture


Mon, 05/14/2012 - 09:15 | 2423306 RacerX
RacerX's picture

I keep wondering if/when this will happen. It would certainly be a 1-2 punch combo.

Mon, 05/14/2012 - 09:24 | 2423345 SilverTree
SilverTree's picture

TBTF? Lets hope not.

Mon, 05/14/2012 - 09:39 | 2423381 scatterbrains
scatterbrains's picture

could you imagine a situation where JPM/FED is caught in a feedback loop where the higher silver goes the more they have to print to save JPM which causes silver to go higher causing more printing and on and on. Silver could be the pin that pricks the world wide fiat paper balloon.

Mon, 05/14/2012 - 09:44 | 2423404 SilverTree
SilverTree's picture

That would be truly spectacular.

Mon, 05/14/2012 - 10:31 | 2423613 Zero Debt
Zero Debt's picture

Next up: "JPM Announces Closure of Commodities Prop Trading Unit" and "Position Unwind"?

Mon, 05/14/2012 - 09:13 | 2423299 mayhem_korner
mayhem_korner's picture



Meet the new boss...same as the old boss.

We won't get fooled again (oh no!).

Mon, 05/14/2012 - 09:14 | 2423302 RacerX
RacerX's picture

" we survive or the Treasury gets it."

Lol.. we'll see how civilized these folks act when their nuts are in a vice.

Mon, 05/14/2012 - 09:26 | 2423347 t_kAyk
t_kAyk's picture

"See, their morals, their "code"... it's a bad joke, dropped at the first sign of trouble. They're only as good as the world allows them to be. I'll show you. When the chips are down, these uh, these "civilized people", they'll eat each other."

~ The Joker

Mon, 05/14/2012 - 09:15 | 2423307 qussl3
qussl3's picture

Buiter was right.

Helicopter drops incoming, only prob is its for the banks.

Whoop dee doo.

Mon, 05/14/2012 - 09:25 | 2423344 EscapeKey
EscapeKey's picture

Why is that surprising? The Federal Reserve is a megabank bailout institution.

Mon, 05/14/2012 - 09:34 | 2423367 FlyoverCountryS...
FlyoverCountrySchmuck's picture

So, why is anyone surprised by a move like this??

You didn't think the any bad Economic News would be allowed before Election Day, did you? JPM is going to made whole again, no matter how much it costs you.

ALL MUST PRAISE THE MESSIAH!!! (or the IRS pays you a visit)

Mon, 05/14/2012 - 09:20 | 2423309 GeneMarchbanks
GeneMarchbanks's picture

'Jamie Dimon just pulled out the trump card: we survive or the Treasury gets it.'

That is one hell of a card. Total Black Swan.

Jamie's Got a Gun...

Mon, 05/14/2012 - 09:25 | 2423343 SheepDog-One
SheepDog-One's picture

Banking by gunpoint of an AK-47....yea Im sure this will work out well! 

You'll TAKE the fukin loan and youll PAY us the interest! DO YOU COMPRENDE??

Thu, 05/17/2012 - 22:06 | 2438171 Jam Akin
Jam Akin's picture

Jamie's got a gun and Jamie's got a rug...

Mon, 05/14/2012 - 09:18 | 2423312 ChickenTikka
ChickenTikka's picture

There's no crying in baseball, Ina!

Mon, 05/14/2012 - 09:18 | 2423314 Jim in MN
Jim in MN's picture

All New York offices of the Treasury and Federal Reserve should be closed for a five-year 'breather'.

Reassign all staff to a nicer, cheaper office. 

Akron is nicer and cheaper.  Or maybe Amarillo.

Mon, 05/14/2012 - 09:38 | 2423378 gmrpeabody
gmrpeabody's picture

Yes..., Amarillo. They can use the conference room at the Big Texan for their meetings. And eat a huge steak at the same time! Classic!

Mon, 05/14/2012 - 10:11 | 2423524 Mach1513
Mach1513's picture

Yeah, Amarillo! Armpit of the world. By the stock pens. Thousands of steers waiting to be herded on to cattle cars.

What an o9dor - just like JPMC.

Mon, 05/14/2012 - 09:18 | 2423315 midgetrannyporn
midgetrannyporn's picture

The Treasury doesn't need the parasitic bankers. When the walls come tumbling down...

Mon, 05/14/2012 - 09:18 | 2423318 the not so migh...
the not so mighty maximiza's picture

No indictments no arrests.  Us taxpayer will cover all loses.   Really the procedure sucks.  It should be nationalize, indict, arrest convict then privitize.


Mon, 05/14/2012 - 09:46 | 2423405 Jim in MN
Jim in MN's picture

Don't forget the Big D, forced divestiture (Ma Bell, most California/New York electric companies, etc. etc. etc.)

Mon, 05/14/2012 - 09:17 | 2423319 Canadian Dirtlump
Canadian Dirtlump's picture

her and her chins are sadly the ones laughing.

in other news ill celebrate their fortunes by buying 10maples today.

Mon, 05/14/2012 - 09:42 | 2423398 toady
toady's picture

I wish! I've been savings every FRN I can get, but I can only afford 3!

I wonder... are we close enough to the crash to load up a couple of credit cards that I'll never get billed for?

Mon, 05/14/2012 - 09:19 | 2423320 Cognitive Dissonance
Cognitive Dissonance's picture


Mon, 05/14/2012 - 09:18 | 2423323 The trend is yo...
The trend is your friend's picture i feel at ease as the really cleaned house

Mon, 05/14/2012 - 09:21 | 2423328 junkyardjack
Mon, 05/14/2012 - 09:20 | 2423329 Snakeeyes
Snakeeyes's picture

What a surprise! .... NOT! Having worked on Wall Street, I know the drill.

Mon, 05/14/2012 - 09:21 | 2423330 mayhem_korner
mayhem_korner's picture



The Grand Manipulator in bed with the Tax Cheat.  We should be comforted.

Mon, 05/14/2012 - 09:22 | 2423331 Dr. No
Dr. No's picture

At least she is not eligable for unemployement, right?

Mon, 05/14/2012 - 09:22 | 2423336 samsara
samsara's picture

In other words, the US Treasury is now firmly behind JPM.

The US Treasury IS JPM,  fixed that for ya.

Mon, 05/14/2012 - 09:21 | 2423338 Jim in MN
Jim in MN's picture



Let's make it extra easy today:


Corruption = Zero real returns across all paper asset classes (cf. PIMCO/Gross)

Corruption = Real savings must rise, and consumption fall, to make up for reduced investment returns

Corruption = -1-2 points off US GDP for next 20 years


Reprogram macro forecasts accordingly.  And, Have A Nice Day

Or Resist, and Have An Even Nicer Day :*)

Mon, 05/14/2012 - 09:21 | 2423340 SheepDog-One
SheepDog-One's picture

But, as Blythe said, JPM did nothing wrong just a little oppsie and no big deal! Treasury....bunch of bums. 1 thing they can count on not getting is any replies to their demands I pay them half my earnings.

Mon, 05/14/2012 - 09:26 | 2423348 Council of Econ...
Council of Economic Terrorists's picture

The masks are coming off and all will be revealed.

Mon, 05/14/2012 - 09:38 | 2423382 FlyoverCountryS...
FlyoverCountrySchmuck's picture

LMAO! Yeah, sure they will. And the Sheeple will be too busy watching the mostly-gay Media praising the Newly-Minted Gay Messiah, on the Magic Squawking Box in the living room to pay attention.

If a bear sh*ts in the woods, and the media doesn't cover it, did it really happen?

(Ask a dead Libyan killed by Obama's Humanitarian bombs how this works.)

Mon, 05/14/2012 - 09:49 | 2423421 toady
toady's picture

Romney is gay?

Mon, 05/14/2012 - 09:51 | 2423432 GetZeeGold
GetZeeGold's picture



No......Romney is the white guy.


Mon, 05/14/2012 - 10:07 | 2423495 toady
toady's picture

The newly-minted thing threw me off...
Romney is the newly-minted candidate, the black guy is the old boss, so, technically he can't be anything "newly".

I don't know, I'm just not good at this political stuff.... Sorry!

Mon, 05/14/2012 - 10:28 | 2423604 Zero Debt
Zero Debt's picture

The gay "debate" the MSM is pushing is a massive diversion from internal problems. Plain old trick in the book: when the budget fails and the treasury is nearly looted: start a frenetic debate about homosexuality, contraception or abortion. And use a lot of charged words, like "evangelicans", "neo conservatives", "liberals", "warmongers" and so on. Most people fall for it. And you can always spin off endless variants: veterans against contraception, servicemen for abortion, evangelicans for homosexuality and so on. Pretend that the debate is "divisive" and throw in some conflicting high-level endorsements. In this way you buy a few months of time to continue pillaging the remaining reserves.

Mon, 05/14/2012 - 10:10 | 2423514 falak pema
falak pema's picture

ever heard of russian dolls?

Mon, 05/14/2012 - 09:34 | 2423368 Josh Randall
Josh Randall's picture

This man sounds like a Good Fella

Mon, 05/14/2012 - 09:34 | 2423371 toady
toady's picture

Socialize the losses!

Mon, 05/14/2012 - 09:40 | 2423372 goforgin
goforgin's picture

Why don't  they just take some of their clients money and reimburse the losing division, or file insurance claim with the FED for the loss?

They could also transfer EBT balances to cover up the loss?



Mon, 05/14/2012 - 09:40 | 2423374 Captain Benny
Captain Benny's picture

Where there is smoke, there is fire.  It seems there are bigger problems at JPM than a small $2B loss.  Jamie Dimon has chosen to go down with the ship, thinking the Fed will keep it floating indefinitely.

Mon, 05/14/2012 - 09:36 | 2423375 BlackVoid
BlackVoid's picture

You got it backwards. JPM stands behind (read: OWNS) the US treasury.

Mon, 05/14/2012 - 09:38 | 2423379 Seasmoke
Seasmoke's picture

Down on your knees Timmah !

Mon, 05/14/2012 - 09:38 | 2423384 Kina
Kina's picture

Ineed, JPM is become Treasury.

Little balls Timmaah can retire, no longer needed, he has served his purpose. Now back to kindergarten and play with your friends Timaah.

Politicians one and all sold themselves to the bankers for a place in their tent, and gave over all regulation and regulators as presents.

SEC - JPM's Cabin Boy. CFTC - JPM's bitch.

Is there an honest regulator, is there and honest politician remaining in American? Or are all of them owned by some bankster somewhere?

Mon, 05/14/2012 - 10:10 | 2423512 Vince Clortho
Vince Clortho's picture

"Is there an honest regulator, is there and honest politician remaining in American? Or are all of them owned by some bankster somewhere?"

Occasionally someone like Ron Paul comes along.  Other than that, DON'T RE-ELECT ANYBODY.  Don't play the "2 party system" game.  It is rigged.  Career politicians consolidate power and become entrenched lapdogs for the central planners.  Put them back out on the street after their first term (unless they are openly fighting TPTB and enforcing the real original constitution of the U.S. and the Bill of Rights).

It really is quite simple.

Mon, 05/14/2012 - 09:44 | 2423399 Moneyswirth
Moneyswirth's picture

I have no problem with JPM losing billions in a trade that went bust.  Shit happens.  That's the business they're in, you balance risk vs reward, and sometimes the shit bites you in the a$$.

My problem is that Dimon is on the NY Fed, part of the bankster oligarchy.  And oh yeah, a Friend Of Obamao.  This is the real issue.



Mon, 05/14/2012 - 09:48 | 2423410 Sandmann
Sandmann's picture

Not only Dimon at the NY Fed, but they made Dick Fuld step down from the NY Fed when discussing Lehman's bust - but Jamie Dimon could be on the Board as he negotiated a taxpatyer subsidy to buy Bear.

Must be something to do with being sidekick to Godfather Sandy Weill and being a Made Man.  Americans can hardly lecture Putin on his corrupt empire, it starts to look as if the USA and Russia and China are all the same

Mon, 05/14/2012 - 09:56 | 2423442 GeneMarchbanks
GeneMarchbanks's picture

'Americans can hardly lecture Putin on his corrupt empire, it starts to look as if the USA and Russia and China are all the same'

Frankly, Putin is the best of the bunch at least admitting that Russia's privatization spree was filled with corruption even though the damage is done.

Mon, 05/14/2012 - 10:19 | 2423556 GMadScientist
GMadScientist's picture

It's all about maintaining a good map of the skeletons to reference in blackmail letters for authentication.


Mon, 05/14/2012 - 09:48 | 2423417 rsnoble
rsnoble's picture

I have a problem with it since it was money lost from the FED's "digital zero transfer program" which will be shifted to taxpayer losses.

Mon, 05/14/2012 - 09:52 | 2423433 Dr. No
Dr. No's picture

My problem is that Dimon is on the NY Fed

The NYFED is owned in part by JPM.  Therefore he has every right to be on the board.  Now, that being said, we can discuss the issues around JPM owning the NYFED.

Mon, 05/14/2012 - 10:09 | 2423510 GMadScientist
GMadScientist's picture

You're ignorant. The 'huge loss' was a result of JPM specifically using bullshit hedges designed to mask risk while providing profit so their VaR and reserve ratios looked sane even though they were anything but.

The tooth fairy says you're a punk bitch.

Mon, 05/14/2012 - 09:44 | 2423401 rsnoble
rsnoble's picture

It's ok, these guys can just walk down the street and get a gazillion dollar gig as a lobbyist somewhere.

This system is fkd.  The train already came off the track in 08 but the cliff is straight ahead.

Mon, 05/14/2012 - 09:50 | 2423420 CoolBeans
CoolBeans's picture

JP is coated in Teflon.  It will remain - a few scapegoats will fall - but it is TBTF and there is too much dirt inside that bag for anyone at the Fed to allow it to break.

Mon, 05/14/2012 - 09:52 | 2423429 Nader_Nazemi
Nader_Nazemi's picture

Wow ! 


Mon, 05/14/2012 - 10:02 | 2423488 Shizzmoney
Shizzmoney's picture

Foot in Mouth, meet James Dimon:

The party, sponsored by JPMorgan for a group of its wealthy private clients, took place at the sumptuous Mansion on Turtle Creek hotel. Mr. Dimon was on hand to thank the guests for their patronage and their trust.

During the party, Mr. Dimon took questions from the crowd, according to an attendee who spoke on condition of anonymity for fear of alienating the bank. One guest asked about the problem of too-big-to-fail banks and the arguments made by Mr. Volcker and Mr. Fisher.

Mr. Dimon responded that he had just two words to describe them: “infantile” and “nonfactual.” He went on to lambaste Mr. Fisher further, according to the attendee. Some in the room were taken aback by the comments.

Neither Mr. Fisher nor Mr. Volcker would comment on the remarks. But it appears to have been a classic performance from Mr. Dimon. In-your-face. Pugnacious. My way or the highway.

Mr. Dimon declined to comment.

Mon, 05/14/2012 - 10:21 | 2423575 GMadScientist
GMadScientist's picture

“I’m very close to thinking the United States shouldn’t be in Basel any more. I would not have agreed to rules that are blatantly anti-American,” Dimon told the FT. “Our regulators should go there and say: ‘If it’s not in the interests of the United States, we’re not doing it’.”

Mon, 05/14/2012 - 10:23 | 2423581 GMadScientist
GMadScientist's picture

"Acting like everyone who's been successful is bad and that everyone who is rich is bad , I just don't get it.... Most of us wage earners are paying 39.6 percent in taxes and add in another 12 percent in New York state and city taxes and we're paying 50 percent of our income in taxes."

Perhaps he was compensated $17M to "not know what's going on at JPM".

Mon, 05/14/2012 - 10:29 | 2423597 GMadScientist
GMadScientist's picture

"I just think this constant refrain 'bankers, bankers, bankers' is just unproductive and an unfair way of treating people. I think it denigrates people. Not all companies are the same, not all CEOs are the same," he said during a session on "The Next Shock: Are we better prepared."


Mon, 05/14/2012 - 10:09 | 2423508 falak pema
falak pema's picture

Like I said, Ina will now cater to the occupy wall street beggars on the street...

Mon, 05/14/2012 - 10:28 | 2423602 PaperBear
PaperBear's picture

The same Long Term Capital Management that George Soros was involved with I take it.

Anyone know what the story is with George Soros and LTCM ?

Mon, 05/14/2012 - 12:00 | 2423957 TicoTiger
TicoTiger's picture

I sense we are finally entering the end-game. This enormous fiat financial vessel we call the worldwide economy is getting really close to the iceberg. There are not enough lifeboats for everyone and the water will be very cold indeed.

Unlike a fictional movie, I doubt if the captain is on the bridge, or the senior officers are still on board. Helicopters don't just dispense paper money to the ignorant passengers but also come to rescue the elites. 

Mon, 05/14/2012 - 14:06 | 2424380 stickyfingers
stickyfingers's picture

The Matt Zames who... "previously worked at hedge fund Long-Term Capital Management LP


“History repeats itself, first as tragedy, second as farce.” Karl Marx


This is the farce part I think.

Thu, 05/17/2012 - 22:11 | 2438190 Jam Akin
Jam Akin's picture

The farce always seems to be a bigger production.

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