JPMorgan Chase Acknowledges $2-Billion Trading Loss
JPMorgan Chase, the largest bank in the United States, says it lost $2 billion in the past six weeks in a trading portfolio designed to hedge against risks the company takes with its own money.
The company's stock plunged almost 7 percent in after-hours trading after the loss was announced today. Other bank stocks, including Citigroup and Bank of America, suffered heavy losses as well.
CEO Jamie Dimon apologized for the losses, saying "the portfolio has proved to be riskier, more volatile and less effective as an economic hedge" than was previously thought. Dimon also told reporters: "There were many errors, sloppiness and bad judgment."
JPMorgan is trying to unload the portfolio in a "responsible" manner, Dimon said, to minimize the cost to its shareholders.
(Copyright 2012 by The Associated Press. All Rights Reserved.)