Drew pins London Whale on machinations

17 March, 2013

Ina Drew at age 36

A Senate subcommittee is asking how JPMorgan Chase
could have allowed its traders to manipulate risk metrics to such a degree and mislead senior executives about the potential losses in the massive synthetic credit portfolio that ultimately totaled $6.2 billion. In her first appearance since the fiasco cost her job former head of the bank’s Chief Investment Office Ina Drew pinned the blame on the machinations of her underlings to hide the losses.
Those machinations included mis-marking of prices on the synthetic credit portfolio. Rather than at the midpoint of bid/ask spreads the London traders were marking trades on the extreme ends of daily ranges at the most advantageous levels possible.
a $1.2 billion loss on the London Whale trades at one point, but Drew told the Office of the Comptroller of the Currency (OCC) losses were just $580 million at that point. Her reported compensation for 2011 was $14 million. May 14 (Reuters) – JPMorgan Chase & Co Chief Investment Officer Ina Drew retired on Monday, the first casualty after the bank suffered trading losses that could reach $3 billion or more and that have tarnished the reputation of high-profile Chief Executive Jamie Dimon.

[July 11 2012]

A DNA sample found at the 2004 murder scene of Juilliard student Sarah Fox has been matched to a separate sample taken at a recent Occupy Wall Street protest in Brooklyn,

The new discovery does not shake investigators’ belief that Dimitry Sheinman is the No. 1 suspect in the case,

Investigators have not yet been able to identify whose DNA was on the CD player and the chain, but they determined it doesn’t belong to Sheinman.
The new DNA sample was found on a chain used to prop open the gates at the Beverly Road subway station in East Flatbush during an Occupy Wall Street protest designed to let straphangers ride for free back in March,

The sample does not belong to any of Fox’s immediate friends or roommates, sources said.
Investigators were also working with several theories that could account for the match. For example, since Fox was a college student, the DNA could have gotten onto her device at school, and that person could later have become involved with Occupy Wall Street, sources said.
The CD player and the chain could also have been touched by the same cop, who had some connection to the murder scene and the chain, sources said. The origin of the chain has not yet been determined.
Whoever the person is, he has not been arrested previously, and has not shown up in any criminal DNA database.
Should the person be ID’d, investigators do want to talk to him, sources said.

Anyone in the subway that day could have touched the chain and left DNA. What is interesting is that they did DNA testing on items left from a protest action.

 

[December 20]Jamie Dimon, the highest-paid chief executive officer among the heads of the six biggest U.S. banks, turned a question at an investors’ conference in New York this month into an occasion to defend wealth.
“Acting like everyone who’s been successful is bad and because you’re rich you’re bad, I don’t understand it,” the JPMorgan Chase & Co. (JPM) CEO told an audience member who asked about hostility toward bankers. “Sometimes there’s a bad apple, yet we denigrate the whole.”

Jamie Dimon’s Next JP Morgan Nightmare
Dimon, 55, whose 2010 compensation was $23 million, joined billionaires including hedge-fund manager John Paulson and Home Depot Inc. (HD) co-founder Bernard Marcus in using speeches, open letters and television appearances to defend themselves and the richest 1 percent of the population targeted by Occupy Wall Street demonstrators.

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