JPMorgan reveals $2 billion trading loss, CEO Dimon admits "egg on face"

[No Elephants]

Or an omlette.

JPMorgan reveals $2 billion trading loss, CEO Dimon admits "egg on face"

By David Henry and Rick Rothacker

Fri May 11, 2012 12:52am EDT

(Reuters) - JPMorgan Chase & Co, the biggest U.S. bank by assets, said it suffered a trading loss of at least $2 billion from a failed hedging strategy, a shock disclosure that hit financial stocks and the reputation of the bank and its CEO, Jamie Dimon.

For a bank viewed as a strong risk manager that went through the financial crisis without reporting a loss, the errors are embarrassing, especially given Dimon's public criticism of the so-called Volcker rule to ban proprietary trading by big banks.

"This puts egg on our face," Dimon said, apologizing on a hastily called conference call with stock analysts. He conceded the losses were linked to a Wall Street Journal report last month about a trader, nicknamed the 'London Whale', who, the report said, amassed an outsized position which hedge funds bet against.

JPMorgan said in a filing with the Securities and Exchange Commission that since end-March, its Chief Investment Office has had significant mark-to-market losses in its synthetic credit portfolio - these typically include derivatives in a way intended to mimic the performance of securities.]/div]

http://www.reuters.com/article/2012/05/11/us-jpmorgan-t...


Derivatives. Seems to me I've heard of those before. Let me think.....

[DainBramaged]

1. It's Monopoly money to all of them...

[ellisonz]

2. Fuck this guy

Join credit unions...

[KoKo]

3. Interesting isn't it. They guy slated to replace Geithner....now is placing Hedges

(Gambling Bets) on whether the Economy Improves.