In the mysterious loss of 2 billion investment in JP Morgan Chase Bank
20120512-naruto
JPMorgan Chase, the biggest US bank, has revealed a surprise trading loss of
$2bn on complex investments made by its traders.MBT shoes
Overall, after accounting for other gains, losses at its chief investment
office (CIO) are estimated to come in at $800m in the second quarter.MBT
shoes
The loss could be as big as $1bn, chief executive Jamie Dimon said in an
unscheduled conference call.
JPMorgan shares fell 6% after-hours, with other bank stocks following.MBT Sandals
Goldman Sachs, Citigroup and Bank of America also suffered heavy losses in
electronic trading after the market close.MBT shoes
The strategy taken at its CIO had been "riskier, more volatile and less
effective" than previously believed, Mr Dimon said.MBT shoes sale
"There were many errors, sloppiness and bad judgement. These were egregious
mistakes.
"They were self-inflicted and this is not how we want to run a business."
'Moving on'MBT shoes uk
The CIO is an arm of the bank used to make broad bets to hedge its portfolios
of individual holdings. Hedging is an investment practice used to reduce the
risk of price fluctuations to the value of an asset.
The trading loss, revealed in a regulatory filing, is expected to hurt
JPMorgan's overall earnings in the quarter, and will come as an embarrassment to
the bank.MBT shoes
It had emerged from the 2008 financial crisis in much better health than many
of its rivals after avoiding risky investments that had hurt others.
"We will admit it, we will learn from it, we will fix it, and we will move
on," Mr Dimon said.
He added that the bank was trying to unload the portfolio in question in a
"responsible" manner in order to minimise the cost to shareholders.
20120512-naruto
JPMorgan Chase, the biggest US bank, has revealed a surprise trading loss of
$2bn on complex investments made by its traders.MBT shoes
Overall, after accounting for other gains, losses at its chief investment
office (CIO) are estimated to come in at $800m in the second quarter.MBT
shoes
The loss could be as big as $1bn, chief executive Jamie Dimon said in an
unscheduled conference call.
JPMorgan shares fell 6% after-hours, with other bank stocks following.MBT Sandals
Goldman Sachs, Citigroup and Bank of America also suffered heavy losses in
electronic trading after the market close.MBT shoes
The strategy taken at its CIO had been "riskier, more volatile and less
effective" than previously believed, Mr Dimon said.MBT shoes sale
"There were many errors, sloppiness and bad judgement. These were egregious
mistakes.
"They were self-inflicted and this is not how we want to run a business."
'Moving on'MBT shoes uk
The CIO is an arm of the bank used to make broad bets to hedge its portfolios
of individual holdings. Hedging is an investment practice used to reduce the
risk of price fluctuations to the value of an asset.
The trading loss, revealed in a regulatory filing, is expected to hurt
JPMorgan's overall earnings in the quarter, and will come as an embarrassment to
the bank.MBT shoes
It had emerged from the 2008 financial crisis in much better health than many
of its rivals after avoiding risky investments that had hurt others.
"We will admit it, we will learn from it, we will fix it, and we will move
on," Mr Dimon said.
He added that the bank was trying to unload the portfolio in question in a
"responsible" manner in order to minimise the cost to shareholders.