Report: JPMorgan Losses Could Be $9 Billion
Losses incurred by beleaguered banking giant JPMorgan Chase may be as high as $9 billion under a worst-case scenario, three times more than the $3 billion originally projected, the New York Times reports.
The losses arise from a credit derivative trade, which JPMorgan CEO Jamie Dimon originally said in May would result in at least a $2 billion loss. It was later revised to $3 billion, and Dimon said that figure could rise, after internal investigations took better stock of the situation.
According to The Times, one such investigation has found that the losses could, in a worst case scenario, amount to as much as $8 billion or $9 billion. The bank is expected to announce at least part of the losses when it releases its second-quarter earnings on July 13, but continues to say it remains profitable for the quarter.
If the loss is as high as this worst-case-scenario projection, that could dwarf the bank's first-quarter profit of $5.4 billion.
