According to Bloomberg JPMorgan Chase, the largest U.S. bank, may report a $4.2
billion second-quarter trading loss in its chief investment office, according
to an estimate by International Strategy & Investment Group Inc.
The pretax loss would help cut second-quarter earnings to 65
cents a share, a 30 percent decline from an earlier estimate of 93 cents, Ed
Najarian, an ISI analyst, said in a note yesterday. Weaker-than-expected
trading and investment banking revenue coupled with mark-to-market
private-equity losses will also weigh on results, Najarian said.
JPMorgan CEO Jamie Dimon, 56, said last month the firm lost
about $2 billion on trades conducted at its CIO unit, which is charged with
managing the bank’s idle cash to earn a profit while minimizing risk. Dimon has
said losses could grow and it might take the rest of the year to liquidate the
New York-based lender’s trades.
The loss will be “partially offset” by $2 billion in
realized security gains, stronger mortgage-banking revenue and so-called
debt-valuation adjustments, Najarian wrote. Excluding the trading losses, DVA
and securities gains, Najarian estimates second quarter operating earnings per
share of 82 cents…
Find out more at http://www.bloomberg.com/news/2012-06-04/jpmorgan-faces-4-2-billion-trading-loss-isi-forecasts.html
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