JP Morgan: Derivatives Now A Great Way To Lose Two Billion
With the bank down over 8% on the announcement of at least $2 billion in expected losses, JP Morgan’s Jamie Diamond has some explaining to do. And simply saying that the incident “puts egg on their face” isn’t cutting it. The massive trading loss stemmed in part from a failed hedging strategy and derivatives bets placed by a large trader better known as the “London Whale.” Known for a high level of risk management, JPM’s lack of diligence does not inspire confidence in an already shaky sector with a looming European crisis on its hands. According to Sterne Agee … Read more