Drew Says Subordinates’ Deception at JPMorgan Let Her Down

March 15 (Bloomberg) -- Ina Drew, former head of JPMorgan Chase & Co.'s chief investment office, testifies before the Senate Permanent Subcommittee on Investigations in Washington about the "London Whale" loss at the CIO last year. (This is an except. Source: Bloomberg)

Ina Drew, who was forced to leave JPMorgan Chase & Co. amid a record trading loss last year, said she relied on other executives to manage a complex book of credit derivatives and didn’t learn of their “deceptive conduct” until after she left the company.

“I was, and remain, deeply disappointed and saddened to learn of such conduct and the extent to which the London team let me, and the company, down,” Drew said in testimony prepared for delivery in the Senate today.

Drew, 56, is testifying before the Senate Permanent Subcommittee on Investigations, which yesterday released a report saying the bank hid losses and dodged regulators last year as it made derivative bets that eventually cost the bank more than $6 billion. Drew ran the chief investment office, which made the faulty trades.

“Some members of the London team failed to value positions properly and in good faith,” Drew told the panel. They “hid from me important information regarding the truth of the book.”

Drew was among Wall Street’s most powerful women until she resigned in May four days after the initial trading loss. Today is her first public appearance since leaving the New York-based bank.

To contact the reporters on this story: Dawn Kopecki in New York at dkopecki@bloomberg.net; Clea Benson in Washington at cbenson20@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net

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