JPMorgan loss could reach $9B, report says

JPMorgan Chase stock declined more than 2 percent Thursday, making it one of the worst-performing banks, after a published report said its loss on a bad trade could be far higher than the bank first estimated.

The New York Times, citing an internal report at the bank, reported that the loss could reach $9 billion. JPMorgan's initial estimate was $2 billion when it disclosed the trade in May, although CEO Jamie Dimon said then that the loss could grow.

JPMorgan Chase stock closed down 90 cents, or 2.45 percent, at $35.88. Financial stocks as a group lost 0.2 percent. JPMorgan traded at about $41 before the loss was disclosed and has closed as low as $31 in the weeks since.

The Times story said the $9- billion figure reflected a worst-case estimate by the bank. But because the bank has sold the most volatile part of the trading position, the loss could be $6 billion to $7 billion, The Times reported.

A JPMorgan representative declined to comment.

"The bottom line is the reputation of JP Morgan is hurt," said Paul Miller Jr., an analyst for FBR Capital Markets & Co. "I don't think people care if it is a $6-billion or $9-billion loss."

The company is expected to provide more detail when it reports its quarterly earnings July 13.-- AP