Fri 29 Jun, 2012 08:16 am
Lost in all the healthcare news:
Losses on JPMorgan Chase’s bungled trade could total as much as $9 billion, far exceeding earlier public estimates, according to people who have been briefed on the situation.
When Jamie Dimon, the bank’s chief executive, announced in May that the bank had lost $2 billion in a bet on credit derivatives, he estimated that losses could double within the next few quarters. But the red ink has been mounting in recent weeks, as the bank has been unwinding its positions, according to interviews with current and former traders and executives at the bank who asked not to be named because of investigations into the bank.
If I were a stockholder of JP Morgan I would be calling for a lot more heads to roll. There are 3.8B shares of JP Morgan outstanding so this represents more than $2/share in losses.