Former JP Morgan CIO Drew distances herself from Whale losses

City A.M. Reporter

FORMER JP Morgan chief investment officer Ina Drew has said she was not to blame for the multi-billion dollar losses that the bank sustained last year.

Giving evidence to the Senate Permanent Subcommittee on Investigations in the US, Drew said today she does not believe she bears personal responsibility for the disastrous trading scheme that has been a black mark against the Wall Street bank.

The bank lost $6bn (£4bn) last year in what quickly became known as the “London Whale”.

"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 committee yesterday released a report yesterday that alleged that the bank ignored risks, misled investors and fought with regulators.

The report blamed Drew, who left the bank last year after more than 30 years, and other senior managers for doing little to rein in the risky trading.

In her testimony, Drew defended her oversight as "reasonable and diligent" and said she believed she didn't hold personal responsibility for the losses.

However, she did concede that "mistakes were made".