First, they were at $2 billion, then $4.4 billion, and now they’re growing even larger.
JPMorgan‘s finance chief said this morning that the total loss from the bank’s chief investment office’s errant trades has totaled $5.8 billion so far.
Traders involved in the gaffe could lose up to two years of income and no are no longer employed by the bank, the company says.
All of the managers involved with the trades have been “separated” from the bank without severance pay.
JPMorgan said losses stood at $4.4 billion during the second quarter.
When the losses were first reported by CEO Jamie Dimon on May 10, he said they stood at about $2 billion but added that they could go higher.
Today, bank execs said they’re no longer confident in the figures initially reported by the CIO and that the bank would soon be restating its first-quarter earnings. That restatement is expected to reduce first-quarter net income by about $459 million.
“This has shaken our company to the core,” Dimon told analysts.
Related articles
- J.P. Morgan Earnings: What to Watch (blogs.wsj.com)
- JPMorgan To Clawback Bonuses, Will Announce CIO Loss Just Over $5 Billion (zerohedge.com)
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