On October 2, 2012, news hit that Barry Zubrow, JPM’s Chief Risk Officer from November 2007 to January 2012 (in other words, key supervisor of the risk onboarded by the CIO, aka JPM’s prop trading desk, for the biggest part of its existence), and then briefly head of corporate and regulatory affairs, would retire from JPMorgan. As Bloomberg reported then, “Now is the right time in my life” to retire, Zubrow, 59, wrote to colleagues in a note today. “We have learned from the mistakes of our recent trading losses.”
We wonder, if the time was “right” for Zubrow’s retirement because the firm realized that the Senate was in possession of the following email sent from Zubrow on April 12, a day before the first fateful Q1 earnings preview conference call in which Jamie Dimon, responding to media reports of Iksil’s blow up, said the whole situation was a “tempest in a teapot”, in which the Chief Risk Officer essentially told the firm’s executives: Braunstein and Dimon, to lie to the public and shareholders (in light of the full Senate report which reveals that all three statements “suggested” by Mr. Zubrow were lies)?
If that is the case, we wonder: why is Mr. Zubrow not being prosecuted?