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JPMorgan reveals shock losses

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NEW YORK — US banking giant JPMorgan Chase on Thursday revealed that it would incur losses that could run into the billions as a result of bad bets on derivatives.

In a unscheduled conference call, chief executive Jamie Dimon reported the trades cost the company around $2 billion in recent weeks, half of which was clawed back.

It “could cost us as much as one billion dollars,” Dimon said, admitting that how markets react in the coming days and weeks could put the final price tag much higher.

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“It could get worse.”

The losses were linked to JPMorgan’s Chief Investment Office, which hedged the firm’s assets and liabilities against synthetic credit derivatives.

“These were egregious mistakes,” Dimon said. “They were self-inflicted and this is not how we want to run a business.”

JPMorgan shares fell 5.5 percent in after-hours trade.

The losses are a humiliation for Dimon — one of Wall Street’s best known titans — and for the bank, coming hot on the heels of the 2008 financial crisis.

Then, the collapse of the market in mortgage derivatives punched a giant hole in banks’ balance sheets and plunged the world’s largest economy into the worst recession in a generation, costing millions of jobs.

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As recently as last month, JPMorgan executives told investors they were “very comfortable” with positions held by the bank, raising questions about how much was known by senior management and when.

The revelations are also likely to fuel debate about President Barack Obama’s sweeping reforms of Wall Street.

Under rules still being finalized, banks would see limits on how much they can trade for their own benefit using deposits, the so-called Volcker rule.

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Wall Street has fiercely opposed curbs on this sometimes lucrative trade.


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COVID-19

Trump uses Memorial Day to attack Biden and recycle old lies about his coronavirus response

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NYT: "At Least 430,000 People Have Arrived in the United States on Direct Flights From China"

President Donald Trump used the occasion of the Memorial Day holiday to recycle old, debunked lies about his likely Democratic opponent, former Vice President Joe Biden.

In a tweet Trump made several accusations, none of them are true.

Sleepy Joe Biden (mostly his reps.) went crazy when I banned, in late January, people coming in from China. He called me “xenophobic” & then went equally “nuts” when we let in 44,000 people - until he was told they were American citizens coming home. He later apologized!

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Trump scorned for claiming he has ‘great reviews’ on COVID-19: ‘This is not a game show’

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On Monday, President Donald Trump complained on Twitter that he wasn't getting enough credit for his COVID-19 response, but that he was still getting "great reviews" on it all the same.

Commenters on social media were not pleased with the president's remarks.

Great reviews? Like on Rotten Tomatoes?

— Lira (@LoudmouthLira) May 25, 2020

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Trump claims ‘great reviews’ for COVID-19 response — while complaining he ‘got no credit’

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In a tweet fired off this Monday afternoon, President Trump painted a rosy picture of the response to his administration's handling of the coronavirus pandemic, saying he's received "great reviews" for his performance.

"Great reviews on our handling of Covid 19, sometimes referred to as the China Virus," Trump wrote. 'Ventilators, Testing, Medical Supply Distribution, we made a lot of Governors look very good - And got no credit for so doing. Most importantly, we helped a lot of great people!"

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