J. P. Morgan’s Loss Could Reach $9 Billion

by Patrick Brennan

J. P. Morgan has chosen a particularly convenient day to begin admitting that their big trading loss, which they had long maintained would be larger than $2 billion, might turn out to be much, much bigger. DealBook reports that some people briefed on the situation have been told the loss could be as big as $9 billion, while the FT suggests $5 billion might be the number. The bank claims that it will still be profitable when it releases its second quarter numbers. DealBook also explains that “the bank’s exit from its money-losing trade is happening faster than many expected. JPMorgan previously said it hoped to clear its position by early next year; now it is already out of more than half of the trade and may be completely free this year.”

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