Through pounding executives, for now, about the valuation of the trades, Mr. Levin turns to the statements made to investors during an April 13 earnings call. Mr. Levin points to an e-mail that Mr. Hogan sent two days before the earnings call to Mr. Braunstein and other top executives, including Mr. Dimon. In that e-mail, Mr. Hogan warns that the chief investment unit needs to be overhauled "to control what is currently going on in CIO."
Mr. Levin asks Mr. Braunstein whether he disclosed that particular concern to investors. The answer, Mr. Braunstein says, was no.
Questioning Mr. Braunstein about statements made to investors that the positions were made with the blessing of risk managers, Mr. Levin pounds the desk in front of him.
Mr. Levin continues to push Mr. Braunstein about the accuracy of his statements.
According to Mr. Levin, the risk managers at the bank, in contrast to Mr. Braunstein's statement in April, were not fully aware of the risky bets when they were placed.
Mr. Braunstein sticks with the same defense. At the time he made the statement, Mr. Braunstein argues he was conveying accurate information.
Mr. Braunstein, on the earnings call in April, said that the comptroller got information "on those positions" as part of a normalized reporting practice.
Mr. Levin keeps repeating his question. He pummels Mr. Braunstein, arguing that the comptroller, in fact, did not get regular information about those positions. Once Mr. Braunstein says that the regulators didn't routinely get granular information about the actual positions, Mr. Levin pares back his questions slightly. Mr. Levin exclaims "finally" when Mr. Braunstein acknowledges that the regulators didn't actually get detailed information about the positions.
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