Ina Drew will testify March 15 in her first public appearance since leaving JPMorgan Chase (JPM) at a Senate hearing into her department's botched derivatives bet and record trading loss.
The former chief investment officer will join ex-Chief Financial Officer Douglas Braunstein and Comptroller of the Currency Thomas Curry in front of the Permanent Subcommittee on Investigations, the panel announced in an e-mailed statement today. Chief Executive Officer Jamie Dimon, who testified twice about the loss last year before Senate and House banking panels, won't return to Capitol Hill for this week's hearing.
The Senate investigations subcommittee, led by Michigan Democrat Carl Levin, 78, is examining wrong-way bets made by Bruno Iksil, one of Drew's U.K.-based traders and known as the London Whale because his positions were so large. The panel will also criticize the bank and regulators for lax oversight, people with knowledge of the findings said in January.
The debacle cost JPMorgan more than $6.2 billion over nine months and at one point wiped out $51 billion in stock-market value for the New York-based bank.
Also to testify before the committee are Ashley Bacon, JPMorgan's acting chief risk officer; Michael Cavanagh, head of the bank's management task force reviewing the CIO losses and co-chief executive officer for the corporate and investment bank; Michael Sullivan, OCC deputy comptroller for risk analysis; Scott Waterhouse, examiner-in-charge of JPMorgan; and Peter Weiland, former head of market risk for the CIO unit.
Drew, 56, was once among the most powerful women on Wall Street. She retired four days after the bank reported an initial $2 billion loss on the trade. Braunstein, 52, was later replaced as CFO by Marianne Lake and now serves as vice chairman at JPMorgan, the biggest U.S. lender by assets.
Joe Evangelisti, a spokesman for JPMorgan, declined to comment before the subcommittee's announcement. Drew couldn't be reached and her lawyer in New York didn't respond to inquiries.
Drew had a long track record of success at JPMorgan and its predecessor companies. Dimon, 57, commended her when she resigned and again in front of Congress, saying "the CIO unit had done so well for so long" that he didn't scrutinize her work as much as he did with other executives.
Her career included guiding the company through the Russian debt crisis and the collapse of hedge fund Long-Term Capital Management LP in 1998, as well as market turmoil after the World Trade Center attacks, the Enron Corp. bankruptcy in 2001 and the financial crisis in 2008.
