Thursday, July 12, 2012

Mr. Clean: Chase’s Dimon tries to rescue his rep





JPMorgan boss Jamie Dimon is hoping to rebound from an embarrassing and costly trading blunder when the bank kicks off Wall Street’s second-quarter earnings season tomorrow, the NY Post reports.

The bank is expected to report around $4 billion in profits despite a massive trading debacle that blew a $5 billion hole in the bank’s balance sheet and badly bruised Dimon’s image.

With the white-hot focus on its trading losses, Dimon is hosting an unusual investor meeting at the bank’s Park Avenue headquarters instead of holding the customary conference call. The nation’s biggest bank will likely benefit from the sale of billions in securities and funky accounting rules that allow it to book profits tied to falling debt values, in particular with the world’s economy on edge.  JPMorgan has also made big bets on the US economy and believes that despite economic head winds, the markets are starting to turn a corner.

The bank is also expected to tell investors that it has unwound more than 90 percent of the complicated derivatives trade that delivered a blow to its balance sheet….

Read more: http://www.nypost.com/p/news/business/the_rebound_guy_ZIwgKGHHQevIH05AQ8IYmL

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