JP Morgan cuts Q1 profits on fears traders hid losses
The largest bank in the United States said it was reducing its net income for the first quarter by $459m to $4.92bn because it had discovered information that "raises questions about the integrity" of values placed on certain trades.
The much-publicised loss, caused by a bad derivatives trades in its Chief Investment Office (CIO), is more than double the bank's original estimate of $2bn.
The loss and restatement were unveiled with second-quarter results showing a profit of $4.96bn, compared with a $471m loss in same three months last year. The quarter to June includes the bank's disclosure of the trading loss on May 10.
Jamie Dimon, the chief executive of JP Morgan, is under pressure to draw a line under the trading losses that has hits the bank's shares and damaged its reputation.
The bank stunned Wall Street when it disclosed that a series of bets made by the CIO on the health of major companies had triggered the . The CIO’s job is to invest deposits that the bank has yet to lend. " - AtW's comment: there should not be such job in a bank - lending may have been safe but gambling with deposits waiting for safe lending clearly wasn't!
Source: JP Morgan cuts Q1 profits on fears traders hid losses - Telegraph
The largest bank in the United States said it was reducing its net income for the first quarter by $459m to $4.92bn because it had discovered information that "raises questions about the integrity" of values placed on certain trades.
The much-publicised loss, caused by a bad derivatives trades in its Chief Investment Office (CIO), is more than double the bank's original estimate of $2bn.
The loss and restatement were unveiled with second-quarter results showing a profit of $4.96bn, compared with a $471m loss in same three months last year. The quarter to June includes the bank's disclosure of the trading loss on May 10.
Jamie Dimon, the chief executive of JP Morgan, is under pressure to draw a line under the trading losses that has hits the bank's shares and damaged its reputation.
The bank stunned Wall Street when it disclosed that a series of bets made by the CIO on the health of major companies had triggered the . The CIO’s job is to invest deposits that the bank has yet to lend. " - AtW's comment: there should not be such job in a bank - lending may have been safe but gambling with deposits waiting for safe lending clearly wasn't!
Source: JP Morgan cuts Q1 profits on fears traders hid losses - Telegraph
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