JPMorgan Discloses $2 Billion in Trading Losses [View all]
Source: New York Times
JPMorgan Chase disclosed on Thursday that a trading group had suffered “significant” losses in a portfolio of credit investments, with chief executive Jamie Dimon estimating losses at $2 billion in a conference call.
“These were egregious mistakes,” Mr. Dimon said on the call. “They were self-inflicted and this is not how we want to run a business.”
The troubles at the unit, the so-called Chief Investment Office that makes trades to balance the bank’s assets and liabilities, are expected to weigh on the bank’s broader earnings.
For example, the corporate group, which includes the Chief Investment Office, is now expected to lose $800 million in the second quarter, the company said in the filing. Previously, JPMorgan had estimated that the group would report net income of roughly $200 million.
Ultimately, JPMorgan said the final tally will depend on the markets and other actions by the bank. Mr. Dimon added that it could “easily get worse.”
Read more: http://dealbook.nytimes.com/2012/05/10/jpmorgan-discloses-significant-losses-in-trading-group/
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