Vukosi Fungeni

J.P. Morgan’s Growing Loss Weighs on Banks

In Financial Management on June 28, 2012 at 20:38

24/7 Wall St.

J.P. Morgan Chase & Co. (NYSE: JPM) is weak this morning on word that the bank’s trading losses will be much wider than originally reported.  The market knew that the loss would be at least $2 billion, but for the trades to unwind the bank’s ultimate loss is one which we will not fully know until the bank’s earnings report in July.  Even then, the full loss may not be known.

The New York Times has a scathing report showing that the trading loss may total as much as $9 billion.  Other news outlets are calling it $9 billion in a headline “one-upping effort” and that may be skewing the news. We were expecting the loss to widen further from the $2 billion, maybe to as much as $4 billion or even $5 billion.  But up to $9 billion?

This trading loss, and the image blow to…

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