Something's gone horribly wrong at America's biggest bank, JP Morgan. It seemed to emerge from the big financial crash of 2008 pretty much unscathed, but now it's announced massive trading losses of £1.2bn.
JP Morgan has offices around the world, including London, and now – like many of its rivals – it seems to be riding a very tough storm. The bank's CEO Jamie Dimon – whom some analysts have called one of the 'self-styled' kings of Wall Street - said the losses were due to bad hedging strategies.He's admitted the firm's made 'sloppy' 'error's and their wounds are 'self-inflicted'. He's also quoted as saying 'This is not how we want to run a business. We will admit it, we will learn from it, we will fix it, and we will move on'
JP Morgan shares plunged almost 6% in afterhours trading so let's see how they do today. Especially in the light that the company said it expects a second quarter loss of around £495m - which is going to be offset in part by other gains. The news has shocked markets because shares in Goldman Sachs, Bank of America and Citigroup dropped after the news too.