Reporting on this is silly in a way, because it has always been postulated that the “$2 billion” trading debacle that had Jamie Dimon in front of congress might actually be for a much larger, undisclosed amount.
Well, here’s confirmation that those initial reports were true – however it remains to be seen whether even more losses will be uncovered. As Max Keiser has reported, these banks are simply insolvent and it is only the artificially intelligent trading platforms that are giving the system any semblance of stability. Undeterred, the cabal continues on as it is now being reported that JP Morgan is down 5% before trading opens as it has been revealed their trading loss has been unwound a bit and now totals 9 Billion! Interesting development given the greenlight by Drake as well as the report from yesterday detailing a series of “living wills” developed by the biggest banks in case they fail. Read on for the official piece:
(Reuters) – JPMorgan (JPM.N) (JPM.F) shares fell 5.3 percent in Frankfurt on Thursday after a newspaper reported that losses from a bungled credit derivatives trade could reach $9 billion in a worst-case scenario.
The U.S. bank’s shares in New York are also trading down 5.4 percent in pre-market trading.
The story was “likely disappointing today” for the shares, Evercore Partners said in a research note.
JPMorgan said in May that it had lost $2 billion on the trades, but these losses have mounted in recent weeks as the bank has unwound its positions, the New York Times reported on Thursday, citing people briefed on the situation.
An internal report at the bank projected in April that the losses could reach $8-9 billion, assuming worst-case conditions, the newspaper said.
JPMorgan declined to comment.
(Reporting by Sarah White and Douwe Miedema)