JPMorgan says trading loss grew to $4.4 billion, more than double original estimate

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Associated Press

Posted on July 13, 2012 at 8:02 AM

Updated Friday, Jul 13 at 8:03 AM

NEW YORK (AP) — JPMorgan Chase say the loss from a highly publicized trading blunder a couple months ago is more than double the original $2 billion estimate.

The bank now says the loss is about $4.4 billion.

On a conference call this morning, CEO Jamie Dimon (DY'-muhn) is telling Wall Street analysts: "We don't take it lightly." Dimon says the bank has closed the division of the bank responsible for the bad trade and moved the remainder of the trading position under its investment banking division.

Overall, JPMorgan says it earned $5 billion, or $1.21 per share, for the second quarter, which covers April through June and includes the bank's disclosure of the trading loss on May 10.

The bank also says it is reducing its net income for the first quarter by $459 million after discovering information that "raises questions about the integrity" of values placed on certain trades.

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APPHOTO NYBZ120: FILE- In this Wednesday, June 13, 2012, file photo, JPMorgan Chase CEO Jamie Dimon, head of the largest bank in the United States, testifies before the Senate Banking Committee on Capitol Hill in Washington. All eyes will be on JPMorgan Chase on Friday, when it becomes the first U.S. bank to report financial results for April through June. The $2 billion trading loss by the largest U.S. bank rattled the company's stock price, triggered a U.S. government investigation and hurt both its reputation and that of CEO Jamie Dimon. (AP Photo/J. Scott Applewhite, File) (13 Jun 2012)

<<APPHOTO NYBZ120 (06/13/12)>>

APPHOTO NYBZ131: FILE - In this Tuesday, June 19, 2012, file photo, Jamie Dimon, CEO of JPMorgan Chase, testifies before the House Financial Services Committee on Capitol Hill in Washington. On Friday morning July 13, 2012, Dimon will appear before Wall Street analysts to apprise them of the size of the loss and what he has done to protect the bank from a similar kind of loss happening again. (AP Photo/Jacquelyn Martin, File) (19 Jun 2012)

<<APPHOTO NYBZ131 (06/19/12)>>

APPHOTO NYBZ132: FILE- In this Thursday, May 10, 2012, file photo, automobiles pass a JP Morgan Chase building in New York. On Friday morning July 13, 2012, CEO Jamie Dimon will appear before Wall Street analysts to apprise them of the size of the loss and what he has done to protect the bank from a similar kind of loss happening again. (AP Photo/Frank Franklin II) (10 May 2012)

<<APPHOTO NYBZ132 (05/10/12)>>

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