We wrote last month about some terrible and extremely risky business practices by JPMorgan. It appeared then that the losses incurred were slightly over $2 billion. While that was bad, the worst was yet to come. Now the losses, from what is being described as “trading blunders,” may rise to $7.5 billion. That’s according to Jamie Dimon, JPMorgan’s CEO, who has been doing damage control over the past weeks.
The botched trades by a JPMorgan unit that Dimon had pushed to boost profit were masked by weak internal controls. That decision will now saddle the bank with a loss much greater than originally thought or at least larger than the public was being led to believe. At press time, JPMorgan had already lost $5.8 billion on the trades. That figure may climb by another $1.7 billion in a worst-case scenario, according to Dimon. We will continue to monitor this situation and hope that members of Congress will do the same.
Sources: Associated Press and Bloomberg
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