J.P. Morgan Chase & Co., the nation’s largest bank,
surprised the market today, saying it has taken huge losses stemming from
derivatives bets gone wrong in the bank’s Chief Investment Office, te Wall St Journal writes..
At 4:30, the bank sent out an unusual notice saying that it
would be holding a call at 5 p.m. but included no details about what the call
would be about. A person familiar with the matter said the call would include
CEO Jamie Dimon and discuss the bank’s quarterly filing.
On the conference call, J.P. Morgan CEO Jamie Dimon said the
bank had taken $2 billion in trading losses in the past six weeks and could
face an additional $1 billion in second-quarter losses due to market
volatility.
The Wall Street Journal reported in April that hedge funds
and other investors were making bets in the credit-default swap markets to take
advantage of volatility that stemmed from the trades done by a London-based
trader that named Bruno Michel Iksil who worked out of J.P. Morgan Chase &
Co.’s Chief Investment Office. J.P.
Morgan’s shares are down 5.5% after hours to $38.50...
No comments:
Post a Comment