From HuffPo: Julien Grout was nowhere to be seen in the
Senate hearing room on Friday. But behind the scenes, this largely unknown
figure had much to do with why his former bosses at JPMorgan Chase were sitting
there uncomfortably, answering often-hostile questions from lawmakers on how
traders lost $6.2 billion on seemingly reckless derivatives trading.
A former bank trader, Grout is party to much of the
correspondence and telephone conversations that Senate investigators presented
as crucial evidence substantiating a key finding in their report released late
Thursday: Top management was directly involved in concealing information that
pointed to staggering losses within the London office of a JPMorgan unit known
as the Chief Investment Office.
According to the Senate report, Grout frequently raised
alarms internally about the size of the positions being staked out by his
direct supervisor, Bruno Iskil, the trader whose gargantuan bets earned him the
nickname the "London Whale." Grout
also engaged in a practice that many Wall Street denizens would regard as an
act of brazen insubordination: He maintained a private spreadsheet tracking the
difference between the daily losses the trading unit was reporting to
headquarters in New York and what he calculated to be the real losses. …
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