Saudi Ministry of Education to showcase innovations at 2025 Geneva International Exhibition    7,523 violators of residency, labor, and border security laws deported in a week    Video contradicts Israeli army account of deadly March 23 strike on Gaza paramedics    Saudi Arabia spends over $241 million to implement de-mining projects in 3 countries    Italy's Meloni government approves controversial security decree expanding police protections and penalties    Egypt submits new Gaza ceasefire and prisoner exchange proposal: Report    'Everything is possible' — Ronaldo focused on titles, not 1,000-goal milestone after Riyadh Derby win    Saudi, US military leaders discuss enhanced defense cooperation in Riyadh    King Salman Global Academy for Arabic Language launches program with Indiana University    Ronaldo brace powers Al Nassr past Al Hilal in Riyadh derby thriller    Ed Sheeran weaves Persian music into new song, Azizam    Al-Jadaan: Crown Prince's directives confirm government's ability to bring back balance to real estate market    Veteran Bollywood actor Manoj Kumar dies at 87    Foreign investors are allowed to engage in real estate business outside Makkah and Madinah Commercial speculation should not be the purpose of real estate transaction    Aubameyang fires Al Qadsiah into King's Cup final with stoppage-time winner over Al Raed    Musk's X is suing India, as Tesla and Starlink plan entry    Tesla sales plunge after backlash against Elon Musk    Danilo Pereira fires Al Ittihad into King's Cup final with dramatic stoppage-time double    Screen time in bed linked to insomnia, study finds    Mexico bans junk food in schools to fight childhood obesity epidemic    Sweet sales surge ahead of Eid as Saudi chocolate imports top 123 million kg in 2024    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



JPMorgan executive Drew denies blame for ‘London Whale' losses
Published in The Saudi Gazette on 16 - 03 - 2013

WASHINGTON – Ina Drew, the former JPMorgan Chase & Co executive in charge of the unit that made the disastrous “London Whale” trades that became public last year, told lawmakers 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.
Those employees did not appear at the hearing before the Senate Permanent Subcommittee on Investigations, and did not participate in the panel's probe. They are based in London and are not subject to the US Senate's subpoena power.
“Some members of the London team failed to value positions properly and in good faith, minimized reported and projected losses, and hid from me important information regarding the true risks of the book,” said Drew, the bank's former chief investment officer, in her first public comments on the matter.
She defended her oversight as “reasonable and diligent” and said she believed she didn't hold personal responsibility for the losses. “Clearly mistakes were made,” she said.
The comments from Drew, who spoke softly but firmly about her role in the debacle, came early in Friday's hearing into the losing derivatives bets that came to be known as the “London Whale” trades.
The Senate panel released on Thursday a report that alleged the bank ignored risks, misled investors, fought with regulators and tried to work around rules as it dealt with mushrooming losses in that portfolio.
The report blamed Drew and other senior managers for doing little to rein in the risky trading as danger signs emerged in early 2012.
On Friday, Senator John McCain from Arizona, the top Republican on the panel, questioned why Drew and others were transferring blame. “It seemed that the traders seemed to have more responsibility and authority than the higher-up executives,” McCain said.
JPMorgan Chief Executive Jamie Dimon initially dismissed rumors of a troubled trading position as a “tempest in a teapot” during an April 2012 conference call.
Less than a month later, the bank disclosed serious problems with the trading strategy, and later said it lost $6.2 billion from the trades.
Dimon, who has testified publicly twice before about the Whale trades, was not invited to appear on Friday. Instead, the panel pressed Drew and other former managers.
Senator Carl Levin, the Democrat from Michigan who heads the subcommittee, asked Peter Weiland, the former head of market risk in Drew's office, about why he dismissed a key risk measure that warned of potentially blooming losses in the synthetic credit portfolio.
The metric predicted that the portfolio could produce a yearly loss of $6.3 billion, which Weiland rejected as “garbage” in February 2012. He said on Friday that, in hindsight, the measure did not appear so far off.
“The whale trades demonstrate how credit derivatives, when purchased in massive quantities with complex components, can become a runaway train barreling through every risk limit,” Levin said. — Reuters


Clic here to read the story from its source.