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JPMorgan acknowledges $2 billion trading loss
JPMorgan Chase, the largest bank in the United States, has said it lost $2 billion over the past six weeks in a trading portfolio supposedly designed to hedge against risks the company takes with its own money.
The company’s stock plunged almost 7 per cent in after-hours trading after the loss was announced. Other bank stocks, including Citigroup and Bank of America, suffered heavy losses as well.
“The portfolio has proved to be riskier, more volatile and less effective as an economic hedge than we thought,” CEO Jamie Dimon told reporters. “There were many errors, sloppiness and bad judgment.”
Sounds like bonuses all round then.
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Would be no problem if only they’d reinstitute Glass-Steagall.
Yes. Kind of embarrassing for Dimon since he had a spat with Mark Carney on the subject of regulation:
http://www.theglobeandmail.com/report-on-business/economy/economy-lab/daily-mix/carney-v-dimon-a-clash-of-world-views/article2181747/