2012-05-10blogspot.com

JPMorgan Chase announced a surprise $2bn trading loss on credit derivatives trading [in its "synthetic credit portfolio" -- surprise, surprise], which chief executive Jamie Dimon blamed on "errors, sloppiness and bad judgement" and warned "could get worse".

...

JPMorgan said the mark-to-market losses came in the bank's chief investment office, a unit set up to invest excess deposits, which has drawn controversy after hedge funds alleged it was taking big proprietary bets.

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Analysts on the conference call were clearly perplexed by the sudden change. JP Morgan was considered to have among the cleanest balance sheets of the major banks. Dimon also noted that the loss could give fuel to critics who say that banks are still too lightly regulated.

ZeroHedge has more gory details in Is JPM Staring At Another $3 Billion Loss?.


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