JPMorgan Earned $5B In Second Quarter Even After $4.4B Trading Loss
Though it suffered an estimated $4.4 billion second-quarter loss related to its bungled trading in some very risky types of investments, JPMorgan Chase said this morning that it still did well enough in its other businesses that it had net income of $5 billion in those three months.
As our colleagues at Planet Money said Thursday, even though the high-profile losses were huge, the nation's largest bank could "probably absorb them, and even make up for them with income from elsewhere in its operations." That seems to be what happened.
According to bank CEO Jamie Dimon, "importantly, all of our client-driven businesses had solid performance."
And concerning the trading losses, Dimon said in a statement that "we have put most of this problem behind us and we can now focus our full energy on what we do best — serving our clients and communities around the world."
Update at 2:30 p.m. ET. Total Loss From Trade Mess Has Grown To $5.8 Billion:
Because it also ran up $1.4 billion in losses related to the bad trading scheme in the first quarter, JPMorgan says its total loss — as of now — from the scheme has grown to $5.8 billion.
Update at 8:50 a.m. ET. More On The News:
The Associated Press notes that the $4.4 billion is more than twice what the bank initially estimated its trading-related loss would be. And, AP reports, "the bank said all managers in the London office responsible for the trade had been dismissed without severance pay and that it planned to revoke two years' worth of pay from each of those executives."