JPMorgan 2nd quarter profit falls nearly 9 percent
By VICTORIA JONES
Talk Radio News Service
JPMorgan Chase’s second-quarter earnings fell 8.7% from a year ago, on a double-digit decline in revenue and a $4.4 billion trading loss at its Chief Investment Office.
The U.S.’s largest bank by assets said it would restate its first-quarter results to reduce profits and revenue amid questions about how traders at the unit marked their positioN.
Including the restatement, total losses on the Chief Investment Office trading hit $5.1 billion in the first half of 2012. The bank said the restatement reflects “recently discovered information that raises questions about the integrity of the trader marks and suggests that certain individuals may have been seeking to avoid showing the full amount of the losses in the portfolio during the first quarter.” The restatement is the latest fallout from the episode in which traders in the Chief Investment office were making outsize bets on certain corporate credit indexes.
Three traders involved in the bets, including Bruno Iksil, nicknamed the “London Whale” for his market moving trades, have left the company.
The Justice Department and the SEC are both investigating the trading loss which has aroused intense scrutiny in Washington where some lawmakers have been fighting efforts by big banks to delay or scale back regulations mandated by the 2010 Dodd Frank financial overhaul.
JPMorgan’s results kick off the reporting season for U.S. banks, delivering investors the first look at a quarter expected to show lacklustrer results from the nation’s largest financial institutions amid tepid loan demands and low interest rates.
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