(NEW YORK) — JPMorgan, in an unexpected announcement, said it saw $2 billion in trading losses in the last six weeks, and may yet see more.
“We have egg on our face,” Jamie Dimon, the massive bank’s CEO, said on a conference call. “We deserve any criticism we get.”
JPMorgan’s stock was trading about six percent lower in after-hours trading and could very well drag down markets on Friday.
In recent weeks, the financial papers, particularly The Wall Street Journal, have been reporting on how the “London whale,” a trader or traders at JPMorgan’s London operations, has been distorting credit markets with big bets.
Now, apparently, those big bets mean a big hole for JPMorgan.
It is “striking how management and company downplayed the actions of this unit” before coming clean with the losses Thursday, said Todd Hagerman, a senior banking analyst with Sterne Agee.
JPMorgan, one of the largest banks in the world, has $1.4 trillion in assets under management. That figure is equivalent to the gross domestic product of Spain, a country whose financial predicament is worrying global markets right now — though nobody is saying JPMorgan is in danger of going under because of the newly announced loss.
Copyright 2012 ABC News Radio
Aaron Smith, CNN Newswire
Jethro Mullen Ivana Kottasova and Patrick Gillespie, CNN
Sarah Anderson, Deseret News