JPMorgan Chase and Jamie Dimon decide on a little derivatives sunshine
JPMorgan Chase announced surprise “significant mark-to-market losses” on credit derivatives in its chief investment office, an opaque unit whose aggressive trades have recently drawn controversy.
The bank said in a regulatory filing that the portfolio at the CIO had “proven to be riskier, more volatile and less effective as an economic hedge than the firm previously believed”.
On a hastily convened conference call, Jamie Dimon blamed “errors, sloppiness and bad judgment”.
Separately, JPMorgan said it was on the hook for as much as $4.2bn in excess of reserves for various legal proceedings.
there's been a great deal of abortive effort to uncover the precise extent of the toxic derivatives held by our criminal, too-big-to-fail banks... suddenly, in this surprise announcement, lo and behold, a little sunshine... my hunch is that this is the thin edge of the wedge and that's there a lot more to come...