JPMORGAN HIT WITH BIG LOSS

(Reuters) -

By Robert Broens: Shares of JP Morgan Chase & Co. (JPM) were hit hard in after hours trading after the "winning bank" of the financial crisis announced a surprise $2 billion trading loss. The Synthetic Credit Loss

JPMorgan Chase reported a surprise quarterly profit Wednesday, even as the company took a hit related to its purchase of failed savings and loan Washington Mutual and warned of earnings pressure in the months ahead.

By Qineqt:JPMorgan (JPM) reported better-than-expected results for the third quarter of the current year on October 12, 2012. As the table below demonstrates, the bank posted EPS of $1.4, against consensus estimates of $1.21, on revenues of $25.9 billion.

By Martim Macedo:Probably the most difficult business to analyze is a bank. We can look at the numbers but we never know the truth behind them. Are they too optimistic on their impairments? Are they making the right level of write-downs? What's the real risk behind their trading portfolio? Are they assuming the real value of their long-term assets? Many more questions can arise, and in some, it's probable that not even the CFO can give you a precise answer.

In a special conference call this evening Jamie Dimon, CEO of JPMorgan disclosed a "trading loss" of at least $2 billion from a failed hedging strategy. The strategy "morphed over time" and it was "ineffective, poorly monitored, poorly constructed and all of that," said Dimon. Last month, Dimon he denied there were any problems, most likely hoping they would go away or he could cover them up. Instead, Dimon went to the confessional.

JPMorgan Chase reported a profit for the quarter Thursday, even though the company took a hit in its investment banking business and set aside a chunk of cash for looming loan losses.

author name submits:By a show of hands, how many people thought "here we go again" when the latest news of the $2 billion loss at JPMorgan (JPM) came out? By now, most market-watchers are familiar with this bit of news: