When the original losses were revealed back in May the losses were estimated at 2 billion. Now after an internal review the losses are estimated at 5.8 billion. However, the company also said that it is possible that there could be up to 1.7 billion more in the worst case scenario.
As a result of this review there may be criminal charges against some traders. Traders deliberately placed incorrect values on trades CEO of JP Morgan Jamie Dimon said:.
"This has shaken our company to the core," Managers in the London office who made the trades have all been fired. The London office made huge bets on corporate debt using derivatives now called "the London Whale trades" They resulted in a whale of a loss!
In spite of the announcement of these huge losses the stock was actually up. This may seem counter intuitive but the company made nearly 5 billion last quarter and no doubt this outweighed worries about the loss. In his report Dimon also claimed that the situation was now under control. For more see this article.
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