11 May

JPMorgan reveals massive trading loss on risky hedging strategies

JPMORGAN has just revealed a surprise trading loss of at least US$2 billion (£1.2 billion) on complex investments and risky hedging strategies made by its traders in its CIO. Apparently, the cause was, as CEO Jamie Dimon put it, “errors, sloppiness and bad judgement” and warned that “it could get worse”. The risks taken by the CIO at the US bank could cost it a further US$1 billion. Jamie, who was Wall Street’s highest paid banker in 2011, added that the bank was trying to unload the portfolio in question in a "responsible" manner to minimise the cost to shareholders.

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