New York City -
JPMorgan Chase CEO, Jamie Dimon made a hurried teleconference call yesterday and announced the that the nation's largest bank had lost $2 billion over the last six weeks, and warned that another billion could be lost as well before the bank can get a handle on the situation.
In what he has called "egregious", he said the bank made risky investments that did not pay out, and that along with sloppy documentation, poor safety procedures and an overall lack of oversight allowed the bank to get into this position.
"There were many errors, sloppiness and bad judgment," Dimon said. "These were grievous mistakes, they were self-inflicted." He did go on to answer that just because they did this does not mean other banks did and said that he does not of any other banks doing this.
JPMorgan, the largest US bank, traced its big loss to the firm's chief investment office, run by Ina Drew. His unit made losing bets on "synthetic credit securities" -- the same kind of instruments that nearly led to a collapse of the financial system in 2008, prompting a nearly $1 trillion govenrment bailout.
After news of this broke, JPMorgan Chase stock traded down 7% in after hours trading. "This has permeated to the wider market as investors assess the possible systemic risk, adding another layer of caution to the fragile trading environment," Jordan Lambert, a trader at Spreadex, told the Associated Press.
Wall Street was up by 0.16% shortly after the opening bell this morning.