TRANSCRIPT
OF
AUDIO
RECORDING PRODUCED
TO
THE
PERMANENT
SUBCOMMITIEE
ON INVESTIGATIONS
Date: Undated (likely late April 2012) Telephone
Call
Parties: Javier Martin-Artajo,
Ina
Drew,
Gina
Serpico
Identifier:
JPMC
Box
10\20120827_Audio Documents\20120827_PSI-A_WH\NATIVES\JPM-CIO-PSI-A 0000076.wav
Mr.
Martin-Artajo:
JP
Morgan.Ms. Serpico:
Yes,
may I please speak
to
Javier?
Mr.
Martin-Artajo:
Yeah,
it's me.Ms. Serpico:
Oh,
hi! I
don't
recognize your voice. It's Gina.
Can
you hold
for
Ina,please?
Mr.
Martin-Artajo:
Sure.Ms. Serpico:Thank you. [Speaking
to
Ina] It's
Jav-
Ms. Drew:
Hi.
Mr.
Martin-Artajo:
Hi, Ina.Ms. Drew:
Excuse
me. Just
so
you know, I tried
to
call Achilles.
You
might
want
to
let himknow.
Mr.
Martin-Artajo:
Yeah.
. Ms. Drew:I saw Hogan. I delivered the message on
what
we
can
and cannot deliver on limitsthis week
or
next. That
we
are doing
an
appropriate review,
that
there
is
adivergence between the single name system that's [Indecipherable.] the numberand the index system, and he needs
to
take
the
pressure
off
in
terms
of
penciling ina number quickly.
Mr.
Martin-Artajo:
Ok.
Ms. Drew:I think he's fine
with
that. And
what
we
can
pencil in, we will,
but
we
don't
have
to
do everything. And then I
just
wanted
to
get a really brief update on, you know,what the
P&L
might look like.
It
looked like
the
curve, the forward curve wasflattening a little.
Mr.
Martin-Artajo:
Yes.
We are going
to
be
showing a slight positive today. I
just
wantto
confirm
that
with
Bruno. I
think
we are going
to
be
up like somewhere around $20 million today,ok?
So
this
is
the
first, this
is
a big event
for
us,
because we are starting
to
get
money back. The guys are a
little
bit
unsure, because we are
not
trading in
the
Permanent Subcommittee
on
Investigations
EXHIBIT #32c
Ms.
Drew:
market. Maybe, maybe, maybe there's a little
bit
more money in the trade.
I,
Iwant them
to
just show
me
what they think
is
for
sure,
ok?
So
I think we are going
to
be
up probably somewhere in the $20 million, ok? Somewhere around that.That, that's on the curve?
Mr.
Martin-Artajo:
That's on the curve. It's a little
bit
on
the curve. And, you know,
if
we mark the full,the full, I think, I think,
to
be
honest
with
you Ina, we
don't
know where the market
is
trading,
so
really-
Ms. Drew:I understand.
Mr.
Martin-Artajo:
Because
the
bid/offer
spread
is
a little
bit
wide, it's getting
better
every day
so
weare within the bid
offer
spread. Now,
that
means
that
probably the real
P&L
is
probably like $50, but I'm going
to
show about half
of
that, ok? I just want
to
makesure
that
we don't, because
I, I,
I really want
to
make sure what we put in the
P&L
what we know
for
sure. And,
so
we are, but
it
is
very important, because this
is
thefirst day
that
we are
-If
you forget about the idiosyncratic thing
that
happenedyesterday in
Rescap,
I mean -this
is
a,
this
is
a market
that
actually
is
starting
to
trade a little bit better for our position. It
is
slightly better. I'm
not
saying
that
this
is
going
to
be
a fast process,
but
it,
it
is
important
that
we start getting positivenumbers now, right?Ms. Drew:The curve
that
I
put
on, Manish put on the screen
for
me
with
Julien's help,
that
it
was starting to, point upwards slightly.
Mr.
Martin-Artajo:
Yeah. Yeah,
it
is
starting
to
get a little better. The only thing
is
I
don't
know howmuch it's trading and I
don't want
to,
I,
I,
I
don'twant
to
show the
P&L
until theseguys confirm. I mean we
are
normally quite conservative in that. And, and
I,
youknow, you know, if, if,
if
the price gets outside the, the bid-offer spread, then wemark that,
ok?
So, so
3
bps
as
you know
is
150 bucks.Ms. Drew:
Yeah.
Mr.
Martin-Artajo:
So
the instruction
to
you
that
we have here
is
probably around $100 million, ok?
So
I
don't
want them
to
show $100 million today
if
they are
not
sure,
ok?
So, so
just
for
you
to
know that, you know, it's about, you know, you know,
if
this
is,
you know,we need
to
have a real, sort
of
3bps move to, to,
to
recognize that. I hope
it
happens and,
if
it
happens between now
and
the end
of
the day or, or, whenever
it
happens, I'll show you. I'll let you know,
ok?
I'll send you
an
email when, if,
if
thingsare improving.Ms. Drew:Here's my guidance.It's absolutely fine
to
stay conservative,
but
it
would
be
helpful,
if
appropriate,
to
get,
to
start getting a
little bit
of
that
mark back.
Mr.
Martin-Artajo: Exactly, I know.
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