by Associated Press
Shares of JPMorgan Chase (JPM) tumbled Thursday as a published report said the bank's losses on a bad trade may reach as much as $9 billion — far higher than the estimated $2 billion loss disclosed last month.
The company's stock dropped $1.48, or 4%, to $35.30 in morning trading. Its shares are down more than 12% since the bank disclosed the trading losses.
The New York Times story cites an internal report that JPMorgan made in April that showed the losses could reach $8 billion to $9 billion in a worst-case scenario. The newspaper went on to say that because JPMorgan has already been unwinding its positions, some expect the losses will not be more than $6 billion to $7 billion.
A JPMorgan representative declined to comment.
In May, JPMorgan said the loss came from trading in credit derivatives designed to hedge against financial risk, and not to make a profit for the New York bank.
The New York Times, citing sources it did not identify by name, said the losses have grown recently as JPMorgan has been unwinding its positions. The newspaper said its sources were current and former traders and executives at JPMorgan, which is the largest bank in the U.S. by assets. [MORE]