J.P. Morgan Chase & Co., the nation’s largest bank, surprised the market today, saying it has taken large losses stemming from derivatives bets gone wrong in the bank’s Chief Investment Office.
At 4:30, the bank sent out an unusual notice saying that it would be holding a call at 5 p.m. but included no details about what the call would be about. A person familiar with the matter said the call would include CEO Jamie Dimon and discuss the bank’s quarterly filing.
On the conference call, J.P. Morgan CEO Jamie Dimon said the bank had taken $2 billion in trading losses in the past six weeks and could face an additional $1 billion in second-quarter losses due to market volatility.
The Wall Street Journal reported in April that hedge funds and other investors were making bets in the credit-default swap markets to take advantage of volatility that stemmed from the trades done by a London-based trader that named Bruno Michel Iksil who worked out of J.P. Morgan Chase & Co.’s Chief Investment Office.
J.P. Morgan’s shares are down 5.5% after hours to $38.50.
Deal Journal live blogged the call, in case anything truly interesting comes up.- WSJ Online
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Source: Wall Street Journal Blog