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NEW YORK: JPMorgan Chase & Company, the biggest US bank, said it had lost $5.8 billion in 2012 from disastrous credit bets and lancel sacs pas cher that traders might have tried to conceal the extent of the losses earlier this year.
Of the trading losses, $4.4bn came in the second quarter. But the bank still generated nearly $5bn of overall profit for the period.
JPMorgan posted lancel sac pas cher second-quarter net income of $4.96bn, or $1.21 a share, compared with $5.43bn, or $1.27 a share a year earlier.
The derivative loss after taxes reduced earnings per share by 69 cents, the company said. JPMorgan made more mortgage loans, which helped results.
JPMorgan's disclosure about traders misstating the value of their positions was the first indication that the problems lancel pas cher with the company's bad trades may have extended beyond bad judgment about markets.
JPMorgan said it had cleaned up its Chief Investment Office (CIO), which made the bad trades, and that any problems were isolated to the group. The trades may lose another $700 million to $1.7bn, chief executive Jamie Dimon said.
The CIO sac lancel pas cher became infamous in May when JPMorgan said bad derivatives bets on portfolios of corporate bonds had triggered about $2bn of paper losses, a figure that turned into $4.4bn of actual losses in the second quarter.
One trader in the CIO, Bruno Iksil, took big enough positions in the credit derivatives markets to earn the nickname "The London Whale". Iksil has left the bank, a source said yesterday.
Ina Drew sac Louis vuitton pas cher, who headed the CIO, has also left, and offered to give back her pay for two years, said Dimon, whose pay is subject to being taken back as well. The bank said it had moved the bad trades from the CIO, which invests some of the company's excess funds, to its investment bank. JPMorgan was one of the key inventors of credit derivatives, and its lancel sac investment bank is one of the biggest traders of the product on Wall Street.
Edited by asdf555999 : July 14, 2012, 5:53 am