Ex-JPMorgan Exec: Loss Wasn't My Fault
Senators question Ina Drew, Douglas Braunstein
By Newser Editors and Wire Services
Posted Mar 15, 2013 4:54 PM CDT
This Oct. 12, 2011 file photo shows a JPMorgan Chase bank building in New York.    (AP Photo/Kathy Willens, File)

(Newser) – Two former high-ranking executives at JPMorgan Chase faced tough questions from senators today about why the bank played down risks and hid losses from regulators when it was losing billions of dollars. Douglas Braunstein, the former chief financial officer, and Ina Drew, the former chief investment officer overseeing trading strategy, were pressed to explain why bank executives gave federal examiners in April information that significantly understated losses for the first quarter of 2012. "The number I reported (to the regulators) was the number that was given to me," said Drew, who resigned last spring after the losses became public.

Drew said that while she doesn't believe she bore personal responsibility for the losses, she decided to step down to make it easier for JPMorgan "to move beyond these issues." Her comments were her first public remarks since leaving the firm. Braunstein acknowledged that risk models for the trading operation were changed in a way that was improper early last year. The changes made the bank's trading losses appear smaller than they were. The hearing was held a day after the Senate Permanent Subcommittee on Investigations issued a scathing report that ascribed widespread blame for $6.2 billion in trading losses to key executives at the firm.

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Showing 3 of 16 comments
793tango
Mar 16, 2013 7:14 PM CDT
When an organization gets big enough part of their goal is to protect the organization, even if it means lying cheating or stealing to do it. You take a corporation as big as JP Morgan Chase and you've got classic 'protect the brand' thinking. happens all the time. Every time a corporation downplays a problem, denies there is one, or simply refuses to comment you're seeing this. Reminds me of theat scene in Animal House where the ROTC guy is trying to keep order while everything around him is falling apart. "Remain calm! All is well!'. And of course the old 'Pay no mind to the man behind the curtain...'.
Stainlesssteve
Mar 16, 2013 3:45 PM CDT
Wah! it was not my fault, it must have been my incompetent underlings and that bitchy secretary who refused my advances,I'm very powerful,people said i'm a genius,those ignorant people must know I am in no way responsible for this. I will stretch the truth,fudge the numbers,blame the bad economic times,I probably can't get that new yacht this year or that red mercedes for my kid. I will plead the fifth,get a slap on the wrist. They don't know who their dealing with.
Bieberforpres2016
Mar 15, 2013 11:06 PM CDT
Let us not forget that JP Morgan Chase employs thousands of people. Mistakes were made, but this will certainly serve as the forum for the low income, low information slobs to attack the 'rich' once again.