Comments on: Who is to blame for Ina Drew’s downfall? http://blogs.reuters.com/felix-salmon/2012/10/03/who-is-to-blame-for-ina-drews-downfall/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Eericsonjr http://blogs.reuters.com/felix-salmon/2012/10/03/who-is-to-blame-for-ina-drews-downfall/comment-page-1/#comment-43647 Thu, 04 Oct 2012 21:13:55 +0000 https://blogs.reuters.com/felix-salmon/?p=18479#comment-43647 Smart post. I’m still not quite getting why the $6b hiccup was such a big deal, given the $350b pot. Trading, a two percent loss is not a good day at all, but not the end of the world. Until it is, I guess.

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By: rb6 http://blogs.reuters.com/felix-salmon/2012/10/03/who-is-to-blame-for-ina-drews-downfall/comment-page-1/#comment-43645 Thu, 04 Oct 2012 17:54:17 +0000 https://blogs.reuters.com/felix-salmon/?p=18479#comment-43645 Prior versions stressed that Drew or her lieutenant in her absence was in effect shouted down by Macris and/or Iksil when they were pushed to answer hard questions.

I had forgotten about Drew’s illness, and I would say that there are some jobs you just can’t do if your health is deteriorating. When you read about these people some of them seem to act as if they are not beset by the same kinds of limitations that normal mortals face — illness, sleep deprivation, limits of knowledge and ability to control the world around them. They are all wrong about that, eventually, the question is whether they realize it in time.

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By: dedalus http://blogs.reuters.com/felix-salmon/2012/10/03/who-is-to-blame-for-ina-drews-downfall/comment-page-1/#comment-43622 Wed, 03 Oct 2012 19:35:31 +0000 https://blogs.reuters.com/felix-salmon/?p=18479#comment-43622 The NYT story is terrible.

It purports to tell readers about a “woman who took the fall for JPM”, but it engenders no sympathy for “women” who face the quandary of being home for their children or attending 4:30 business meetings. Besides, Irene Tse recognized the Whale trade’s risk:

“Macris was shocked when Drew brought in Irene Tse, a hedge-fund recruit, to replace Duersten, rather than making him the sole deputy. “He was devastated, he was outraged,”….

No, the story is not about a woman, but rather about how Wall Street’s Old Guard no longer possesses the relevant skill-set for effectively managing risk:

“Edsparr essentially told Drew that her way of investing—based on bottom-up economic analysis of markets, as opposed to abstract mathematical models—was on its way out.”

Edsapparr is totally correct. Ina Drew’s is just the latest version of people like Jimmy Cayne or Joe Cassano or Citicorp’s Tommy Maheras, who was also lovingly profiled before his fall:

http://www.bloomberg.com/apps/news?pid=n ewsarchive&sid=a5An7tqNsOw4&

Any close reader of the Maheras Bloomberg story would have come away concluding that Maheras was totally out of his depth.

Ina Drew is just one more dinosaur who has passed on, though her dinosaur-like boss still roams the land, at least for now.

The Whale Trade is a chapter in the larger story about a generation of wildly overpaid Wall Street executives whose thinking & skill set has been superseded.

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By: MrRFox http://blogs.reuters.com/felix-salmon/2012/10/03/who-is-to-blame-for-ina-drews-downfall/comment-page-1/#comment-43617 Wed, 03 Oct 2012 17:34:24 +0000 https://blogs.reuters.com/felix-salmon/?p=18479#comment-43617 There’s a lot in this newest version that doesn’t quite seem to hang together.

On one hand, Drew is presented as a sort of wild-eyed trader with no position-limits to restrain her. Yet, we are then told she didn’t know up-from-down when it came to the trades that did the damage. Are we to believe she ordered Macris and The Whale to take this massive position in something she knew nothing about? If that’s the case, let’s hear it straight-out that she gave the order to establish the exposure. And if she didn’t – who did?

And this, from Dimon –

“Honestly, I don’t care what second-guessers say in life,” he tells Dominus. “If anyone in the company knew, they should have said something.”

Knew what, JD? That the trade was in place? – IDTS; everybody knew that. More likely, he’s offering that nobody told him what a bad idea it was to take this kind of risk, so how can he be to blame? Sort of like an adolescent, whining – “but nobody told me not to, Mom.” Perhaps this mind-set is why Sandy Weill fired Dimon’s ass.

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By: MrRFox http://blogs.reuters.com/felix-salmon/2012/10/03/who-is-to-blame-for-ina-drews-downfall/comment-page-1/#comment-43614 Wed, 03 Oct 2012 16:46:45 +0000 https://blogs.reuters.com/felix-salmon/?p=18479#comment-43614 Wow – just, Wow! This telling of the tale is so different from the earlier NYT presentation, the one based on actual interviews with Drew and others. In that version, it was Dimon who pushed the London operation out of the US and into the UK, and with the declared assignment to make big money from hedging.

Earlier we were told by Drew herself, according to the reporter, that she and her successor (and asian lady whose name escapes) tried to get Macris to reduce the exposure, but he shouted them both – his bosses – into submission.

Kinda feel we’ll not get a credible telling of it until Drew is in front of a grand jury and spills it under oath.

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