JP Morgan Chase and Co had a big surprise from investors when news of the loss was disclosed as a contrite Jamie Dimon laid out details for the financial community.
Shares dropped in after hours trading. Chase has credit card and other operations in Wilmington, Newark and Christiana, Del.
The losses, according to a Los Angeles Times story, stemmed from derivative bets that backfired in the company’s Chief Investment Office. This part of the bank was in charge of trading to balance the company’s assets and liabilities, although it had been criticized by some analysts for operating more like a hedge fund, the LA Times website reported.
The losses are expected to increase pressure on financial services company to lessen their exposure to exotic investments.
Find out more by clicking the link below from the Los Angeles Times. Photo from Los Angeles Times
JPMorgan Chase discloses $2-billion trading loss – latimes.com.
