JP Morgan Chase loses billions in trading
POSTED: Friday, May 11, 2012 - 9:30am
UPDATED: Friday, May 11, 2012 - 9:34am
NBC News — JP Morgan Chase says it lost $2 billion in trading over the past six weeks. CEO Jamie Dimon called the bank's strategy flawed and said the company would quote, "fix it and move on." Dimon spoke to analysts and investors during a conference call thursday after the stock market closed. He said the trading portfolio, part of a strategy to hedge against risks to the company, proved more volatile than expected.
A single trader known as "The London Whale" reportedly made large enough trades to move prices in the $10 trillion market. Dimon declined to answer questions about specific people or trading strategies involved but admitted the loss quote, "puts egg on our face." JP Morgan shares plunged nearly 7% after the closing bell and dragged other financial shares lower.