Tags: JPMorgan | Dimon | Trade | loss

JPMorgan CEO Dimon: Botched Trade Will Be Forgotten in a Year

Tuesday, 22 May 2012 12:43 PM

The billion-dollar botched trade at JPMorgan Chase will be forgotten by year's end, says  bank CEO Jamie Dimon.

The bank has said the trading error, part of a hedging move gone wrong at the institution's chief investment office, would translate into a $2 billion loss although sources tell CNNMoney the figure could climb as high as $7 billion by some estimates.

The bank will get through this, Dimon tells the Deutsche Bank Global Financial Services Investor Conference, pointing out the losing trades were "an isolated event" adding they will be "something we don't have to talk about by the end of the year," CNNMoney adds.

Editor's Note: The Final Turning Predicted for America. See Proof.

The bank is strong enough to handled the loss, Dimon adds, pointing to $700 billion in loans and the chief investment office's $8 billion in unrealized gains.

"We are still a very conservative company," Dimon says

The loss has sent the bank's stock prices falling, prompting executives to halt a share buyback although dividend payments won't be affected.

Experts applaud the bank for making such decisions quickly ahead of congressional probes and regulatory inquiries that will probe whether regulations were violated or if systemic risk was at hand.

"By getting ahead of the issue, JPMorgan is reducing the pressure on Capitol Hill for more severe responses, such as cutting the dividend," says Jaret Seiberg, a senior policy analyst in Washington for Guggenheim Securities, according to Reuters.

"The further ahead you can get, the more you can mitigate the response and I think that is what we are seeing at play."

Editor's Note: The Final Turning Predicted for America. See Proof.


© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
275
2012-43-22
Tuesday, 22 May 2012 12:43 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved