Thursday, June 28, 2012

J.P Morgan loss could be bigger than expected and hit $9 billion

Jamie Dimon J.P Morgan's CEO had previously announced in may a loss of $2 billon on derivatives products that were too complex for human- being,

JP Morgan's London office has reported today a trading loss after using credit derivatives that were far too complex too understand, and loss could be worse and reach $9 billion in the worst-case scenario according to the New York Times, an unnamed source said that an internal report has been made at JP Morgan in April and was showing that loss could hit $9 billion in the worst case. After the news has been made public, JP Morgan's shares dropped significantly.
 The New York Times has also reported that about half of the position on credit derivatives had been already exite, according to JP Morgan Management the firm was profitable on the 1st Quarter, but it is now possible that the next 2 or 3 quarters will serve to cover the loss.

Over the last 3 months, JP Morgan's stocks have lost almost 21% and had dropped 3% in pre-market trading this morning after the bad news. 

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