Sometimes the market really does work. JPMorgan had been taking such large positions in the market that others had to know where they were. Once there's blood in the water, you can count on other sharks stepping in and joining the feeding frenzy.
How's that risk genius team doing at JPMorgan now and why is Dimon still CEO?
The trading losses suffered by JPMorgan Chase have surged in recent days, surpassing the bank’s initial $2 billion estimate by at least $1 billion, according to people with knowledge of the losses.Meanwhile the Federal Reserve is investigating the JPMorgan trades to confirm that they were within the guidelines of a federally insured bank. Dimon currently sits on the board of the NY Federal Reserve, though Elizabeth Warren is calling for his resignation.
When Jamie Dimon, JPMorgan’s chief executive, announced the losses last Thursday, he indicated they could double within the next few quarters. But that process has been compressed into four trading days as hedge funds and other investors take advantage of JPMorgan’s distress, fueling faster deterioration in the underlying credit market positions held by the bank.
A spokeswoman for the bank declined to comment, although Mr. Dimon has said the total paper trading losses will be volatile depending on day-to-day market fluctuations.