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Mar 27, 2013

JPMorgan risk disclosures fell short for regulators -documents

NEW YORK, March 27 (Reuters) – For months after JPMorgan
Chase & Co executives first admitted that they had
wrongly brushed off questions about the “London Whale”
derivatives losses, officials at the U.S. Securities and
Exchange Commission pressed the company to disclose more to
investors about risks it was taking.

The SEC’s Division of Corporation Finance, which is charged
with making sure companies provide investors with enough
information to make good decisions, pushed the bank from at
least July to February to revise disclosures about changes it
had made in models used to calculate value it put at risk in its
derivatives portfolio.

Mar 16, 2013

Ex-JPMorgan exec tries to dodge harpoon of “whale” losses

WASHINGTON (Reuters) – Ina Drew, the former JPMorgan Chase & Co executive who earned millions while in charge of the unit that made the disastrous “London whale” trades, refused on Friday to accept responsibility for the $6.2 billion (4.1 billion pounds) in losses revealed last year.

Testifying before a Senate panel, the former chief investment officer instead pointed a finger at the traders and managers below her. They did not appear at the hearing because they are in London and outside the Senate’s jurisdiction.

Mar 15, 2013

Ex-JPMorgan exec Drew declines to be harpooned by ‘whale’ losses

WASHINGTON (Reuters) – Ina Drew, the former JPMorgan Chase & Co (JPM.N: Quote, Profile, Research) executive who earned millions while in charge of the unit that made the disastrous “London whale” trades, on Friday refused to accept responsibility for the $6.2 billion in losses revealed last year.

Testifying before a Senate panel, the former chief investment officer instead pointed a finger at the traders and managers below her. They did not appear at the hearing because they are in London and outside the Senate’s jurisdiction.

Mar 15, 2013

Ex-JPMorgan executive Drew declines to be harpooned by “whale” losses

WASHINGTON (Reuters) – Ina Drew, the former JPMorgan Chase & Co executive who earned millions while in charge of the unit that made the disastrous “London whale” trades, on Friday refused to accept responsibility for the $6.2 billion (4.1 billion pounds) in losses revealed last year.

Testifying before a Senate panel, the former chief investment officer instead pointed a finger at the traders and managers below her. They did not appear at the hearing because they are in London and outside the Senate’s jurisdiction.

Mar 15, 2013

Ex-JPMorgan exec Drew denies blame for “Whale” losses

WASHINGTON (Reuters) – Ina Drew, the former JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) executive in charge of the unit that made the disastrous “London Whale” trades that became public last year, told lawmakers on Friday that she does not bear personal responsibility for the $6 billion in losses.

Instead, she blamed others for deceiving her, including her direct reports – Achilles Macris, who supervised the trading book at issue, and Javier Martin-Artajo, who managed it on a day-to-day basis.

Mar 15, 2013

Senate: JPMorgan ignored risks, fought regulators

WASHINGTON (Reuters) – JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) ignored risks, misled investors, fought with regulators and tried to work around rules as it dealt with mushrooming losses in a derivatives portfolio, a Senate report alleged in a damning review of the largest U.S. bank’s management.

Senior managers at the bank were told for months about the bad derivatives bets that ended up costing the bank $6.2 billion, but did little to rein them in, according to the Permanent Subcommittee on Investigations report on Thursday.

Mar 14, 2013

Emails show JPMorgan tried to flout Basel rules: Senate

NEW YORK (Reuters) – JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) risk managers tried so hard in 2012 to get around international capital rules that they viewed their own discussions as too sensitive for email, according to a Senate report released on Thursday.

The report on the JPMorgan “London Whale” scandal includes the story of a quantitative engineer for the bank who made waves internally by sending an email suggesting how the bank could rearrange its risk modeling procedures to better accommodate the ballooning risk metrics inside the chief investment office.

Mar 14, 2013

Emails show JPMorgan tried to flout Basel rules -U.S. Senate

NEW YORK, March 14 (Reuters) – JPMorgan Chase & Co
risk managers tried so hard in 2012 to get around international
capital rules that they viewed their own discussions as too
sensitive for email, according to a Senate report released on
Thursday.

The report on the JPMorgan “London Whale” scandal includes
the story of a quantitative engineer for the bank who made waves
internally by sending an email suggesting how the bank could
rearrange its risk modeling procedures to better accommodate the
ballooning risk metrics inside the chief investment office.

Mar 14, 2013

Senate report blames senior JPMorgan management in Whale losses

WASHINGTON, March 14 (Reuters) – Senior managers at JPMorgan
Chase & Co, including Chief Investment Officer Ina Drew,
were told for months about the bad derivatives bets that ended
up costing the bank $6.2 billion but did little to rein them in
until it was too late, according to a U.S. Senate report.

Telephone calls and instant messages show traders felt
pressure to misstate the values of the derivatives and were
upset about doing so, but the bank stood by the prices and said
in an internal document they were “consistent with industry
practices,” according to the report.

Mar 14, 2013

Senate report details JPMorgan’s clashes with regulator

WASHINGTON, March 14 (Reuters) – JPMorgan Chase & Co
frequently clashed with its main regulator as the bank’s losses
from bad credit trades mounted last year, a Senate report said.

The dysfunctional relationship between JPMorgan and the
Office of the Comptroller of the Currency, which oversees the
regulated bank subsidiary of JPMorgan’s holding company, went
all the way to the top of the bank, according to the report.