According to Bloomberg's Best disastrous trades by a unit of JPMorgan Chase & Co. that Jamie Dimon had pushed to boost profit were masked by weak internal
controls and may ultimately saddle the bank with a $7.5 billion loss.
JPMorgan’s chief investment office has lost $5.8 billion on
the trades so far, and that figure may grow by $1.7 billion in a worst-case
scenario, Dimon, the bank’s chairman and CEO, said today. Net income fell 9
percent to $4.96 billion in the second quarter, the bank said. It restated
first-quarter results to reduce profit by $459 million after a review of the
unit found employees may have hid souring bets.
By capping the size of the potential loss and revamping
management of the businesses responsible, Dimon may help restore investor
confidence after the bank’s market value dropped $39.7 billion since April 5,
when Bloomberg News first reported that the company had amassed an illiquid
book of credit derivatives at the London chief investment office….
No comments:
Post a Comment