Friday, June 29, 2012

JPMorgan's trading loss could hit $9 billion ? report

Yuri Gripas / REUTERS

JPMorgan Chase's CEO Jamie Dimon testifies before lawmakers.

By Roland Jones

The loss from JP Morgan?s botched trade could total as much as $9 billion, far higher than the original estimates of the shortfall, according to a report in The New York Times.

JP Morgan?s CEO Jamie Dimon estimated in May that the bank?s losses from the trade, which came as a result of a bad bet on credit derivatives, would be $2 billion, and he estimated that losses could double within the next few quarters.

But the tally of the losses has grown in recent weeks as the bank has unwound its positions, the Times said. The newspaper also said the bank?s exit from its money-losing trade is happening faster than many expected. JP Morgan had previously said it hoped to clear its position by early next year, the Times said.

Dimon has appeared before lawmakers on Capitol Hill in recent weeks to explain the origin of the multibillion-dollar trading loss.

Lawmakers peppered him with questions about regulation and risky practices at the bank, but did not press him to give an update on an estimated $3 billion in trading losses.

Click here to check on shares of JP Morgan.

Source: http://marketday.msnbc.msn.com/_news/2012/06/28/12457488-jpmorgans-trading-loss-could-hit-9-billion-report?lite

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