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JPMorgan Reveals $2B Losses

Due to “egregious mistakes” in trading.

JPMorgan Chase has disclosed $2 billion in losses from a trading group’s credit investments, causing the bank’s share price to plummet in after-hours trading. On a conference call, CEO Jamie Dimon blamed the losses on “egregious mistakes” in betting on the investments. These losses are expected to take a toll on the bank’s larger earnings, with the corporate group expected to lose $800 million in the second quarter, the company said today in its quarterly securities filings. JPMorgan had previously estimated that it would report a net income of roughly $200 million. The final report will depend on whether the company can recover, though Dimon said things could “easily get worse.”