JPMorgan Trading Loss Worse Than Expected, But...
...It barely dented the firm's Q2 profits
By Kevin Spak, Newser User
Posted Jul 13, 2012 7:36 AM CDT
JPMorgan Chase CEO Jamie Dimon, head of the largest bank in the United States, testifies on Capitol Hill, June 13, 2012.   (AP Photo/J. Scott Applewhite)

(Newser) – JPMorgan reported a $4.4 billion trading loss this morning, a figure far worse than analysts were expecting, in the wake of the "London Whale" fiasco. That drove the bank's earnings down 8.7%, but still left it with $4.96 billion in profit for the second quarter, down only a bit from its $5.43 billion mark a year ago, the Wall Street Journal reports. "We are not proud of this moment, but we are proud of the company," Jamie Dimon said. "We're not making light of this error, but we do think it's an isolated event."

At the same time, however, the bank said it would soon revise its first-quarter results southward, thanks to "recently discovered information that raises questions about the integrity of the trader marks and suggests that certain individuals may have been seeking to avoid showing the full amount of losses." Analysts tell Bloomberg that the larger-than-expected losses will leave the bank struggling to restore investor confidence. "The reputation problem will just get worse," one analyst said.

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Showing 3 of 32 comments
iq145
Jan 13, 2013 1:22 PM CST
Aw. Those poor billionaires. It breaks my heart...
Major7
Jul 14, 2012 4:46 PM CDT
I don't understand the problem with this situation. Companies risk money. Companies make stupid decisions sometimes. The market sorts it all out. Does anyone know how much Microsoft wrote down for their loss on Bing? Anyone? Hint: it's more than $4.4 Billion. Why is no one making a fuss about that?
saucier111
Jul 13, 2012 3:04 PM CDT
Their corruptiom and house of cards are starting to crumble. http://www.rollingstones.com/politics/news/the scam wall street learned from the mafia. Why are the replubicians so eager to deregulate every thing, it is pure fucking GREED.