JPMorgan Chase Suffers Trade Loss
By: Leon Castles
on Friday, May 11, 2012
Houston has been attracting many manufacturing jobs, but it is also one of the main cities as there are many financial companies that have their headquarters and business here. JPMorgan Chase is one of the largest financial companies in Houston. In the recent company announcement the bank have revealed that the Chief Investment Office has suffered a trading loss that is estimated to be around $2 billion. The company said that this is one of the biggest losses that they have suffered in their trading portfolio this year. Many of the financial experts believe that the loss that JPMorgan Chase has suffered is mainly because of the risks that the company took on its own.
JPMorgan Chase CEO, Jamie Dimon said that the trading portfolio proved to be riskier and more volatile that they estimated and even less effective. He also admitted that there were several sloppy mistakes and judgment errors that led to this trading loss, but they will keep that in mind in the future and learn from it. He also said that the losses were somewhere related to the $10 trillion market trade made by one of their single trader that they normally call as London Whale. Financial experts have said that this loss is certainly going to hit the revenues and earnings of the JPMorgan Chase in the second quarter.