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Bloomberg: JPMorgan’s Trading Loss Hits $4.4 Billion Driving Profit Down 9%

July 13, 2012, 07:21 AM
Filed Under: Banking News

Bloomberg reported that JPMorgan Chase & Co. reported a larger than previously estimated $4.4 billion trading loss in its chief investment office, which helped drive second-quarter profit down 9%. The bank’s chief executive officer, Jamie Dimon had previously stated the estimated $2 billion loss could grow to $3 billion or more during the quarter. The report also states that JPMorgan said it recently discovered information that suggests some individuals at the company may have been trying to avoid showing the full amount of the losses.

According to the Bloomberg report, the bank has lost $39.7 billion in market value since April 5, when Bloomberg News first reported that the company had amassed an illiquid book of credit derivatives at the London unit. The report also cites that the firm is being investigated over the possible gaming of U.S. energy markets and was subpoenaed in global investigations of interest-rate fixing in London.

Bloomberg reported net income fell to $4.96 billion from $5.43 billion in the same period a year earlier. The company also restated first-quarter earnings, reducing net income by $459 million.

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