DealBook: JPMorgan Trading Loss May Reach $9 Billion

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.

Amid JPMorgan Chase's $2 billion trading loss at its chief investment office, DealBook highlights some executives who may face additional scrutiny from the embarrassing incident.

An internal report written by a management task force confessed to widespread failures regarding a bad bet on credit derivatives that cost JPMorgan more than $6 billion.

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 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.

By ValueMax:JPMorgan Chase & Co.'s (JPM) stock was most recently rocked when The New York Times reported that the losses from the trading debacle could reach $9 billion.