Friday, July 13, 2012

Almost triple the estimate of the loss

And this is only what they are admitting to.

By PALLAVI GOGOI, NEW YORK —"JPMorgan Chase said Friday that a bad trade had cost the bank $5.8 billion this year, almost triple its original estimate, and raised the prospect that traders had improperly tried to conceal the blunder.

"This has shaken our company to the core," CEO Jamie Dimon said.

The bank said managers tied to the bad trade had been dismissed without severance pay and that it planned to revoke two years' worth of pay from each of those executives.

JPMorgan said it had lost $4.4 billion because of the trade from April through June, and its chief financial officer said the bank had lost an additional $1.4 billion in the first three months of the year.

Dimon's original estimate of the loss from the bad trade, disclosed in a surprise conference call with Wall Street analysts in May, was $2 billion.

On Friday, Dimon said he believed the loss was mostly contained. In the worst case, if financial markets deterioriate severely, the bank could lose an additional $1.7 billion, he said. That would bring the total loss to $7.5 billion."

And why is Dimon not taking any responsibility?

No comments:

Post a Comment