[ by Melanie Gretchen ] JPMorgan Chase & Co. is proceeding full-throttle into an inquiry by company directors into losses in a credit derivative portfolio run by its London-based Chief Investment Office.  The losses from the bets, known as the "London Whale" trades, will undergo the scrutiny of Lee Raymond, ex-CEO of Exxon Mobil Corp, according to a source familiar with the matter. Mr. Raymond, 73, was CEO and chairman of Exxon from 1993 to 2005 and goes into the probe as the "presiding director" of the JPMorgan board, which also appointed fellow directors William Weldon, chairman of Johnson & Johnson, and real estate developer Laban Jackson.  The trio's investigation will run concurrently with an investigation by company management, while federal prosecutors and the SEC conduct their own. Under Investigation. Company executives said in July that their investigation had produced evidence that traders had mismarked the value of the derivatives to hide losses (now nearly $6 million) – in which case company management would be exempt from possible claims that they did not properly disclose the situation to investors. 

Case in Point: when CEO Jamie Dimon in April called press reports of possible losses a "tempest in a teapot."

Going forward, the board will double-checking the findings of management and interview company employees when necessary.  Unfortunately, its review may not be available until late fall or early winter, according to sources. For further details, go to [Reuters, 8/20/12].