1. Whoops

    Dimon: $2B Loss Is 'Egg on Our Face'

    Automobiles pass a JP Morgan Chase building Thursday, May 10, 2012, in New York. JPMorgan Chase, the largest bank in the United States, said Thursday that it lost $2 billion in the past six weeks in a trading portfolio designed to hedge against risks the company takes with its own money. The company's stock plunged almost 7 percent in after-hours trading after the loss was announced. Other bank stocks, including Citigroup and Bank of America, suffered heavy losses as well. (AP Photo/Frank Franklin II)

    Frank Franklin II / AP Photo

    Federal securities regulators said Friday they have been investigating JPMorgan Chase's hedge-fund losses.The announcement followed CEO Jamie Dimon's admission that $2 billion was lost from "egregious mistakes" on a hedging strategy. JPMorgan Chase, the biggest U.S. bank by assets, estimates the business unit will post a loss of $800 million this quarter, when it previously forecast a profit of $200 million. Dimon said in a hastily arranged conference call to investors that the report "puts egg on our face." He linked the losses to a trader nicknamed the "London Whale," who had allegedly amassed a outsized position that hedge funds bet against. Regulators said Friday that they had discussions with JPMorgan Chase the division that allegedly lost the money for a month.

    Read it at Reuters