JP Morgan Down Cause a French Trader Loses Billions

This is the French trader nicknamed “the whale in London” which is causing losses of $ 2 billion in cumulative six weeks. A sum that could still grow.

Jamie Dimon on Whale of London

JP Morgan’s CEO; Jamie Dimon on Whale of London

Banks still have not digested the 2008 financial crisis. JP Morgan has announced after the close of U.S. markets heavy losses of over 2 billion following the massive purchase of product derivatives that were originally the 2008 financial crisis . CEO Jamie Dimonspoke of losses of “litigation of approximately $ 200 million” and “pre-tax losses the brokerage of over $ 2 billion” during a conference call surprise.

The boss of the first U.S. bank by assets added that these losses could still grow up to an additional billion dollars. The asset portfolio has complained yet “a lot of volatility,” said the leader. “We will manage up”, but “it could cost us up to a billion dollars or more” and “the risk will remain for several quarters,” added the CEO.This mass loss is due to the purchase of products , called “credit default swap” (CDS) to hedge the exposure of the bank credits. “In covering this portfolio of assets, there was a bad strategy, poorly executed, it has become more complex and was poorly followed,” admitted Jamie Dimon.

The leaders of JP Morgan admitted he discovered these management problems following an article in the Wall Street Journal in early April outlining the astonishment of the City of London face very risky positions and mass of a French trader at JPMorgan, Bruno Michel Iksil in the CDS. It was nicknamed the “Whale of London” . At the time, Jamie Dimon had described this information a “storm in a teacup”.In electronic trading after-hours trading, the title of U.S. bank plunged by 6.73% to $ 38. investors believing that the gains on debt products, nearly one billion, not enough to cover the massive losses announced.

One response to “JP Morgan Down Cause a French Trader Loses Billions

  1. Pingback: The CEO of JP Morgan will Testify in U.S. Senate by the Loss of Billions « Johnson.J's News Blog·

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