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Friday, July 13, 2012

JP Morgan Reports $4.4 Billion Whale Loss

JPMorgan Chase Tower
JPMorgan Chase Tower (Photo credit: Kent Wang)
The number everyone has been waiting for...  JPMorgan has finally released official numbers about the extent of its losses at its London-based CIO unit, which were first reported earlier this year. The CIO trading loss number is $4.4 billion according to the company's announcementThere have been reports that the loss could have been as high as $9 billion, so this is not at the high end at this point. The company also says that it's also shutting down its synthetic credit unit. The news comes just a few minutes after the company also reported a downward restatement of Q1 earnings after discovering a material weakness. JPMorgan Chase Reports Second-Quarter 2012 Net Income of $5.0 Billion, or $1.21 Per Share, On Revenue1 of $22.9 Billion. Results Include CIO Trading Losses. Supported Consumers, Businesses and Communities. Our client-driven businesses all had solid performance this quarter; continued improvement in consumer credit; lower volume in capital markets2.
    • Investment Bank maintained #1 ranking for Global Investment Banking Fees
    • Consumer & Business Banking average deposits up 8%; Business Banking loan originations up 14%
    • Mortgage Banking originations up 29%
    • Credit Card sales volume3 up 12% ... Continue to read.
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