JPMorgan Chase trading loss closer to $6 billion than $2 billion CEO had reportedSubmitted by DeMolay on Sat, 07/14/2012 - 01:53
NEW YORK -- JPMorgan Chase said Friday that its traders may have tried to conceal the losses from a soured bet that has embarrassed the bank and cost it almost $6 billion -- far more than its CEO first suggested.
The bank said an internal investigation had uncovered evidence that led executives to "question the integrity" of the values, or marks, that traders assigned to their trades.
"This has shaken our company to the core," CEO Jamie Dimon said.
The bank said managers tied to the bad trade had been dismissed without severance pay and that it planned to revoke two years' worth of pay from each of those executives.
JPMorgan said it had lost $4.4 billion because of the trade from April through June, and its chief financial officer said the bank had lost an additional $1.4 billion in the first three months of the year.
Dimon's original estimate of the loss from the bad trade, disclosed in a surprise conference call with Wall Street analysts in May, was $2 billion.