WASHINGTON, March 15 Ina Drew, the former
JPMorgan Chase & Co executive in charge of the unit that
harbored the disastrous "London Whale" trades, said on Friday
that she does not bear personal responsibility for the losses,
and instead blamed others for deceiving her.
Drew, the former Chief Investment Officer, said in testimony
before the Senate Permanent Subcommittee on Investigations that
risk models were severely flawed and that some members of the
London trading team misvalued positions and hid important risk
information from her.
"I believe that my oversight of the synthetic credit
portfolio, including during 2012, was reasonable and diligent,"
Drew said. "I have since come to learn - based on the company's
public statements in July 2012 and Task Force Report in January
of this year - that valuations for many of the book's positions
were inflated and not calculated or reported in good faith."
She said: "Needless to say, I had no knowledge of these
things at the time."
The Senate issued a report on Thursday finding that JPMorgan
ignored risks, misled investors, fought with regulators and
tried to work around rules as it dealt with mushrooming losses
in a derivatives portfolio.