JPMorgan Chase disclosed in a regulatory filing on Thursday that a trading group had suffered "significant" paper losses in a portfolio of credit investments.
The troubles at the unit, the so-called chief investment office that makes trades to balance the bank's assets and liabilities, could weigh on the bank's broader earnings. The corporate group, which includes the C.I.O. group, is expected to lose $800 million in the second quarter, although the final results will depend on the market and other activity, the company said in the filing. Previously, JPMorgan had estimated that the group would report net income of roughly $200 million.
"C.I.O. has had significant mark-to-market losses in its synthetic credit portfolio, and this portfolio has proven to be riskier, more volatile and less effective as an economic hedge than the firm previously believed," JPMorgan said in the filing.
The trading group has been the focus of scrutiny in recent weeks as questions surfaced about big bets the JPMorgan unit was reportedly making in credit default swaps. On a conference call on Thursday evening, JPMorgan chief executive Jamie Dimon said the company faced trading losses of $2 billion related to group.
Shares of JPMorgan were down 5.5 percent in after-hours trading. |
发表于 2012-5-10 18:11
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