There is "breaking news" in the business commuity where JPMorgan Chase has just announced that it has "significant losses in it's synthetic credit portfolio."
They are also reporting that their Investment Division will likely post an $800 million loss in Q2.
Is this the beginning of another end? Stock markets have rebounded nicely since the crash in 2008 and the massive injections of cash by government in the US, Canada and the EU. However, the past month or two there has been extremely low trading volumes and up and down stock markets in Canada and the US.
BNN is reporting that JPMorgan Chase has had a "12 or 13 billion dollar swing in the market value of securities relative to the cost since March 31st", the company's CEO J. Dimon says JPMorgan Chase has taken a $2 billion trading loss due to their hedges being "poorly executed and poorly managed" and the shares are trading down 5% tonight in after hours trading tonight.
To me, hearing a CEO say things like "We will fix it and we will move on." and "This is not how we want to run the business." and "Obviously we should have acted sooner." does not instill much confidence at all, especially from a CEO who has been a vocal advocate against any new regulations from governments in the financial industry.
One wonders how this is being taken by the powers that be in Washington. I would bet there's a lot of cringing going on and wait to see what happens in the morning.