Two of the world’s biggest banks were shown to be menaces to the financial system yesterday, sending all financial stocks plunging and markets generally falling.
Despite many denials from other media during the day, the New York Times report that JPMorgan may be losing $9 billion from its huge London derivatives bet, stands up. The Times’ sources appear to include some inside JPMorgan Chase itself, who discussed what the bank’s running internal reports on the mega-loss are showing. They show that the London derivatives loss is now “internally” estimated at $6-9 billion, with only half of the $100-150 billion bet “unwound.” Morgan’s stock value had previously dropped by $23 billion since the first announcement of the loss, and it fell more than 2% more yesterday.
Read the article in full at LPAC