Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Double trouble at JP Morgan: trader's losses could exceed $7bn

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
Home » Discuss » Latest Breaking News Donate to DU
 
seafan Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-22-12 10:38 AM
Original message
Double trouble at JP Morgan: trader's losses could exceed $7bn
Source: Independent (UK)

The crisis at JP Morgan escalated yesterday as it emerged its trading losses in London could rise to as much as $7bn (4.5bn) and the US bank cancelled a share buyback. Fears were growing that the losses could spiral from an initial $2bn, which was declared on 10 May, as JP Morgan struggles to unwind the massive bets made by the so-called "London Whale" trader Bruno Iksil.

In a further blow, chairman and chief executive Jamie Dimon has suspended plans to use the US bank's own funds to buy back $15bn worth of shares. Buybacks are a popular way for firms to use up cash sitting on the balance sheet and prop up the share price.

JP Morgan shares tumbled 82 cents or 2.45 per cent to a new six month-low of $32.67. The bank's value has fallen by a quarter in a year. Mr Dimon insisted that the decision to cancel the buyback was not linked to fears about a possible increase in losses. "You should not interpret this as anything about the size of the loss," he said.

But as doubts persisted that the crisis has not yet abated, speculation was mounting that Mr Dimon could be forced to give up at least one of his dual boardroom roles. He has previously been regarded as the savviest banker on Wall Street as JP Morgan survived the credit crunch without a bailout.

Read more: http://www.independent.co.uk/news/world/americas/double...



These losses will undoubtedly climb higher.


Break these big banks up NOW.




Refresh | 0 Recommendations Printer Friendly | Permalink | Reply | Top
No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-22-12 09:59 PM
Response to Original message
1. This supposed to be ok because it is a small percentage of JPM's assets.
?
Printer Friendly | Permalink | Reply | Top
 
No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-23-12 12:22 AM
Response to Original message
2. Oh, look! Pension funds are suing Dimon and others over losses in JPM shares!
Printer Friendly | Permalink | Reply | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Thu Apr 17th 2014, 10:20 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC