JPMorgan profit falls on $4.4 billion trading loss
Source: Reuters
Fri Jul 13, 2012 8:08am EDT
(Reuters) - JPMorgan Chase & Co, the biggest U.S. bank, posted $4.4 billion of credit trading losses, but said it had cleaned up the group responsible for the bad bets.
The bank said its Chief Investment Office, which made the trades, was no longer betting on credit derivatives. Another group will manage what is left of the trades.
The CIO, which manages risk for the overall bank and invests excess deposits, will now focus on conservative investments, JPMorgan said. The problems were isolated to the group, the company added.
"We have put most of this problem behind us and we can now focus our full energy on what we do best," Chief Executive Officer Jamie Dimon said in a statement.
Read more: http://www.reuters.com/article/2012/07/13/us-jpmorgan-earnings-idUSBRE86C0G420120713
Myrina
(12,296 posts).... in other words, cut them all ENORMOUS severance packages and lifetime parachutes and moved them on to a lobbying/consulting gig.
Hissyspit
(45,788 posts)Roland99
(53,342 posts)As a result of this, regulators who now are only 3 years behind the curve, are most likely snooping to inquire not only how JPM did it (call us: we can brief you in 2 minutes), but who else has been doing this? Hint: everyone.
Because in other words, we have just discovered that the two key components of the entire CDS market: the LIBOR base and market "marks" have been bogus at best, and realistically, fraud. And one wonders why no bank ever will let CDS trade on an exchange...
Full Filing