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$2 billion of "grievous" trading mistakes: JP Morgan Chase takes huge loss

05-14-2012 07:55 BJT

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The chief executive of JP Morgan, which disclosed a 2 billion US dollar trading loss last week, says he was wrong when he dismissed concerns about the bank last month.

CEO of JP Morgan Chase Jamie Dimon said, "I was dead wrong when I said that. I obviously didn’t know because I never would have said that. And one of the reasons it became public is because we wanted to say, ’You know what? We told you something was completely wrong a mere four weeks ago.’ And we took a two billion dollar loss and we made it clear it could get worse before it gets better. You know, be volatile by a billion dollars, possibly. I do want to put in perspective, the company is going to earn a lot of money this quarter, and so it’s a very strong company. We made a terrible, egregious mistake, there is almost no excuse for it."

A policeman stands guard outside the JP Morgan headquarters in New York May 11, 2012.

After the bank reported the trading loss, investors shaved almost 10 percent off the bank’s stock price. Dimon says the loss came from trading in so-called credit derivatives, and was designed to hedge against financial risk -- not to make profit. He added that the bank is open to inquiries from regulators, and he’s promising to investigate what happened and learn from mistakes.

JP Morgan announces $2 billion mistakes.

 

Editor:Zhang Rui |Source: CNTV.CN

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