JP Morgan Chase

[MnJetFan]

It just keeps getting better?

NEW YORK - JPMorgan Chase now says a bad trade has cost it $5.8 billion this year. That's almost triple the $2 billion estimate the bank gave when it revealed the blunder in May.

The nation's biggest bank also says an internal investigation has called into question the values that traders placed on certain bets, and that the traders may have been trying to hide the losses.

It says it's reducing its net income for the first quarter by $459 million after discovering information that "raises questions about the integrity" of values placed on certain trades.

The bank says managers tied to the bad trade have been dismissed without severance pay and that it plans to revoke two years' worth of pay from each of those executives.

CEO Jamie Dimon (DY'-muhn) told analysts today the bank isn't making light of the error, but believes it's "an isolated event."

He says the division responsible for the bad trade has been closed and the remainder of the trading position has been put under its investment banking division.

Despite the huge loss, JPMorgan posted net income of $5 billion for the most recent quarter, easily topping Wall Street's forecasts. Its stock is trading higher today.

[palmetto defender]

Bad trade. Lost money. Highly profitable for the quarter and year. Non story.
No different than an airline hedging wrong on fuel. They LOSE money though.
Jamie Dimon took quick corrective action. Better than the pres and the GAO or on Solyndra. Or the $14+ billion in improper social security payments. Or a litany of other gov foul ups.

[Warfish]

Originally Posted by palmetto defender

Bad trade. Lost money. Highly profitable for the quarter and year. Non story.

The loss of almost 6 Billion dollars is always a story.

[Jetworks]

Originally Posted by Warfish

The loss of almost 6 Billion dollars is always a story.

Especially if the "ethics" of those that caused the problem are called into question.

[JetPotato]

Originally Posted by Warfish

The loss of almost 6 Billion dollars is always a story.

Really? I must be missing the media's coverage of that amount of loss by our Federal Government that must come out approximately every 35 hours.

[Warfish]

Originally Posted by JetPotato

Really? I must be missing the media's coverage of that amount of loss by our Federal Government that must come out approximately every 35 hours.

The Government does view that as a loss.

The Government views that as investment.

[JetPotato]

Originally Posted by Warfish

The Government does view that as a loss.

The Government views that as investment.

As does JP Morgan Chase

[MnJetFan]

In the Banking and Government World S--t Happens!

[palmetto defender]

Originally Posted by Warfish

The loss of almost 6 Billion dollars is always a story.

All relative. It is a lot of money, true. But JPM will actaully make over $10bill profit AFTER this fiasco.
They will still be the biggest and best.
On the other hand, look at companies like Sears and Penney. Losing like crazy. Not to mention most airlines - constantly.
Sprint - junk- LOSES $3 bill EVERY year. T Mobile - a dog.
Don't want to sound like Cramer, but I'm a buyer of JPM at $34 if it falls back.

[Jungle Shift Jet]

Originally Posted by Warfish

The loss of almost 6 Billion dollars is always a story.

And yet the multi-B stolen by illegals corzine and solyndra and multi-T wasted by B. Hussein is not.

[Jetworks]

Originally Posted by palmetto defender

All relative. It is a lot of money, true. But JPM will actaully make over $10bill profit AFTER this fiasco.
They will still be the biggest and best.
On the other hand, look at companies like Sears and Penney. Losing like crazy. Not to mention most airlines - constantly.
Sprint - junk- LOSES $3 bill EVERY year. T Mobile - a dog.
Don't want to sound like Cramer, but I'm a buyer of JPM at $34 if it falls back.

The issue is the money AND how it came to pass that it was lost. Just like the whole Merck fine thing, the money is one thing, but it's the blatant ethics violations by individuals that are supposed to know/be better, that's the real problem. Forest for the trees.

[palmetto defender]

Originally Posted by Jetworks

The issue is the money AND how it came to pass that it was lost. Just like the whole Merck fine thing, the money is one thing, but it's the blatant ethics violations by individuals that are supposed to know/be better, that's the real problem. Forest for the trees.

I am not sure if it was ethics or even illegal. Just stupid and dangerous. Unnecessary risk when a certain amount of prudence is called for.
When some managers have a number to make and because of whatever reason they are falling short, sometimes they do stupid things and take stupid risks.
Sometimes mistakes are made because of STUPID. Lazy people not doing due diligence.