"No man can become rich without himself enriching others"
Andrew Carnegie



Tuesday, May 15, 2012

JP Morgan Pain Is Investor Gain

New York Stock Exchange
New York Stock Exchange (Photo credit: Wikipedia)
Shares of investment bank JP Morgan (NYSE:JPM) fell about 7% on news that the company incurred a $2 billion trading loss. In a conference call with analysts, CEO Jaime Dimon was candid and apologetic to shareholders. Dimon admitted that the bank's hedge trading strategy was "egregious" and poorly tended to. That sentiment fell on deaf ears; by noon trading volume was over 100 million shares versus a daily average of nearly 30 million.

Investopedia Broker Guides: Enhance your trading with the tools from today's top online brokers.

More RegulationAs a result of the financial crisis of 2008, many have been calling on Washington to push for more regulation in the financial industry. Dimon, over the past couple of years, has been very vocal about the consequences to the economy as a result of placing more regulation on the banks. Needless to say, this trading loss has reinvigorated the call for more regulation. According to the retiring Democratic leader of the House...

Read more: http://www.investopedia.com/stock-analysis/2012/JP-Morgan-PainIis-Investor-Gain-JPM-GS-C-WFC0514.aspx?partner=YahooSA#ixzz1ut

Enhanced by Zemanta

No comments:

Post a Comment