JPMorgan Loss Could Reach $9B

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JPMorgan Chase’s CEO Jamie Dimon thought he had covered his bases when he estimated that the bank’s $2 billion losing investment on credit derivatives could double within the next few quarters. But he didn’t expect that the numbers could triple, let alone quadruple, as current and former traders and executives at the bank have inferred. Regulators have estimated the damage at roughly $6 billion or $7 billion, though it’s not clear how this will factor into the debate over how strictly financial institutions and huge banks should be regulated. In retrospect, the bank’s first-quarter profit of $5.4 billion makes the trading loss seem less disastrous, though CEO Jamie Dimon, who has been fighting major regulatory changes, could take the biggest hit. Meanwhile, Wall Street stocks declined on the new estimates at the opening bell.