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
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
