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.
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.
The losses from JPMorgan's botched derivatives trade may reach $9 billion, nearly five times the amount announced in May, the New York Times reported Thursday.The Times quoted an unnamed source as saying a report generated in April showed that in a worst-case scenario the losses from the trade could reach $8-9 billion, but said some regulators expect something closer to $6-7 billion.Last week the CNBC business news network had also said the final losses would not exceed $6-7 billion, given that the company had moved quickly to unwind the position.
By Zvi Bar:JPMorgan Chase & Co. (JPM) showed its hand to the market and announced its intention to unwind positions relating to its recent two billion dollar trading loss, but that does not mean the losses are over. Worse yet, JPM's troubles relating to this may jump the shark and extend from the mere monetary to the regulatory.
In a 129-page report attached to its quarterly earnings, JPMorgan Chase dissected the trading loss of more than $6 billion at its chief investment office, outlining a breakdown at the highest levels of management and “remedial” steps it has taken.