Analysis: Fallout from JPMorgan loss may have just begun

Jamie Dimon will do his best to put the "London Whale" trading flap behind him on Friday when JPMorgan Chase & Co reports earnings, telling Wall Street that the bank has capped losses from the ...

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon sought to hide escalating trading losses that surpassed US$6.2 billion, misled investors and dodged regulators as a “monstrous” derivatives bet deteriorated last year, a Senate probe found.

* Investment bank bet against CIO in derivatives market * Bank said to have discussed merging opposing trade books * Opposing bets could fuel claim JPM is too big to manage

Earlier today, as part of our JPM earnings recap we observed that "VaR plunged from $106 to $62" and wondered if it was just just "another excel copy/paste error" which as we reported previously, is what JPM's internal audit attributed much of the confusion surrounding JPM's VaR calculation around the time the London Whale blow up nearly doubled the firm's VaR.

Since Sunday, reports have surfaced the JP Morgan's board may release a report blaming CEO Jamie Dimon for last year's the $6.2 billion 'London Whale' trading loss.

By Soha Group:We continue to profile the 2Q 2012 earnings reports of large cap companies (recap of Alcoa's results here). Going into earnings season, many companies reduced guidance and analysts cut their projections. We now want to find out if expectations were reduced low enough to reflect the generally pessimistic view of 2H 2012.

By Simon Johnson In an interview Thursday on PBS NewsHour, Jeffrey Brown and Treasury Secretary Tim Geithner had the following exchange: “JEFFREY BROWN: Do you think Jamie Dimon should be off the board [of the New York Federal Reserve Board]?