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An immense trading bet boomeranged on J.P. Morgan Chase JPM +0.25% & Co., leaving
the financial institution with no less than $2 billion in trading losses and its particular leader, James Dimon, that has a rare blow after a years to come as what some the “King of Wall Street.”
The losses stemmed from wagers gone wrong within the bank’s Chief Investment Office, which manages risk to the Ny company. The Wall Street Journal reported early last month that large positions consumed that office by way of a trader nicknamed “the London whale” had roiled a sector on the debt markets.
The bank, betting over a continued economic recovery having a complex web of trades tied to the values of corporate bonds, was hit hard when prices moved against it starting last month, causing losses in numerous of that derivatives positions. The losses occurred while J.P. Morgan attemptedto cut back that trade. (more…)
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May 11th, 2012
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