JPMorgan Chase & Co. Chief Executive Officer Jamie Dimonsaid the firm suffered a $2 billion trading loss after an“egregious” failure in a unit managing risks, jeopardizing WallStreet banks' efforts to loosen a federal ban on bets with theirown money.
The firm's chief investment office, run by Ina Drew, 55, tookflawed positions on synthetic credit securities that remainvolatile and may cost an additional $1 billion this quarter ornext, Dimon told analysts yesterday. Losses mounted as JPMorgantried to mitigate transactions designed to hedge creditexposure.
“There were many errors, sloppiness and bad judgment,” Dimonsaid as the company's stock fell in extended trading. “These weregrievous mistakes, they were self-inflicted.”
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