Just last week, JPMorgan Chase disclosed in its 10-Q
regulatory filing a $2 billion trading loss related to derivatives in its chief
investment office in London. Soon after, JPMorgan's CEO Jamie Dimon hopped on an
emergency conference call to discuss the trading blunder referring to it as an
"egregious" mistake. The news
has since caused the bank's stock to plummet and it has also renewed concerns
about the need for tougher regulations.
Anyway, let's back up a bit. Remember back in early April with both
Bloomberg and Wall Street Journal reported that a credit derivatives trader
with JPMorgan named Bruno Iksil, who later became dubbed the "London
Whale," had a position that was so massive it was rattling the
market? Of course you do...
Initially, JPMorgan's chief executive Jamie Dimon referred
to those reports as a "tempest in a teapot." during the bank's
first-quarter earnings conference call.
But according to the New York Times, less than two weeks after that
earnings call, JPMorgan realized it had a real problem….
No comments:
Post a Comment