(NEW YORK) — Trading losses at JPMorgan Chase may be much bigger than previously thought.
Citing people familiar with the matter, The New York Times reports the bank’s losses may have ballooned to as much as $9 billion. Previous reports had the estimate at $2 billion and counting.
The sources tell the newspaper “the red ink has been mounting in recent weeks, as the bank has been unwinding its positions.”
In May, JPMorgan traced its loss to losing bets on “synthetic credit securities” — the same kind of instruments that nearly led to a collapse of the financial system in 2008, prompting a nearly $1 trillion government bailout.
The mishandled trade has added to the debate over bank regulations, and whether some “too big to fail firms” are making very risky trades.
Copyright 2012 ABC News Radio
David Goldman, CNN
Sara Weber, Deseret News
Jeff Peterson, Deseret News
Sarah Anderson, Deseret News