Bruno Iksil, the JPMorgan trader known as the London Whale, had an e-mail sent to about 20 colleagues last year estimating almost double the daily losses his book had shown thus far. Then the phone rang.
'Why did you do that ?' his supervisor, Javier Martin- Artajo, said at the start of the March 20 call. The position was failing to recover, Iksil explained.
'Okay, Okay, listen you’ve done it', Martin-Artajo said, according to a transcript. 'You think that this is right. This is not what I would have done but you’ve done it so I’m okay with this'.
The conversations were revealed last week as the U.S. Senate Permanent Subcommittee on Investigations released a 301-pagereport on the botched derivatives bets, as well as almost 600 pages of e-mails, phone-call transcripts and other records.
While lawmakers used the documents to bolster their findings that the New York-based company and its executives misled investors and regulators, the tome also provides a rare look at how traders and their bosses grappled with stress and a growing sense that they wouldn’t be able to contain the damage.
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