JPMorgan Faces $4.2 Billion Trading Loss, ISI Forecasts
June 5, 2012 Leave a comment
JPMorgan Chase & Co. (JPM), the largest U.S. bank, may report a $4.2 billion second-quarter trading loss in its chief investment office, according to an estimate by International Strategy & Investment Group Inc.
The pretax loss would help cut second-quarter earnings to 65 cents a share, a 30 percent decline from an earlier estimate of 93 cents, Ed Najarian, an ISI analyst, said in a note yesterday. Weaker-than-expected trading and investment banking revenue coupled with mark-to-market private-equity losses will also weigh on results, Najarian said.
JPMorgan Chief Executive Officer Jamie Dimon, 56, said last month the firm lost about $2 billion on trades conducted at its CIO unit, which is charged with managing the bank’s idle cash to earn a profit while minimizing risk. Dimon has said losses could grow and it might take the rest of the year to liquidate the New York-based lender’s trades.