The largest U.S. bank JP Morgan has gambled with a failed trading strategy, and put two billion dollars in the sand. In the “Chief Investments” have existed since the end of March “significant accounting losses,” the institute said on Thursday night in a surprise announcement at the SEC. In this section, the bank is betting that will protect the investment in individual stocks, such as loans to companies with a low rating from a rating agency. Bank boss Jamie Dimon was forced to call in person to investors and analysts. In a hastily convened conference call with stock specialists said Dimon, the disaster was self-inflicted

bank chief spoke of “egregious errors” that had been committed. The principles of his house had been violated. The category “Corporate and private equity” in the second quarter will therefore probably identify a loss of 800 million dollars. The disaster but will also leave traces in the coming quarters. The mistakes are all the more embarrassing in light of the fact that the management had always opposed stricter regulation of banks under the so-called “Volcker rule,” Dimon acknowledged. “That makes us pretty stupid standing there.”

JP Morgan’s shares lost nearly seven percent of post-trade and other bank stocks also moved into the basement. The shares of Citigroup tended in electronic trading more than two per cent weaker, after Bank of America gave 1.7 percent. JP Morgan is measured in the assets of the largest U.S. bank.

The shares of JP Morgan Chase lost on the New York Stock Exchange, 9.3 percent, to $ 36.96. So they were on Friday (local time) by far the biggest loser on Wall Street. Around 212 million shares of the bank changed hands – that was the biggest trading volume since time immemorial. The Dow Dow Jones index joined the other hand, with moderate losses of 0.3 percent .

Before the announcement had a loss of two billion dollars through risky trading business , the rating agency Fitch prompted the credit rating of the largest U.S. downgrade Bank. The credit rating will increase by one notch to A-plus from AA-minus previously lowered the rating agency said on Friday evening. The extent of the losses was by high-risk bets but manageable. However, the size of the deficit interpret as indicative of a lack of liquidity. In addition, the case raises questions about risk management of the finance house on.

SEC has launched investigations

One of the “New York Times’ report, launched the U.S. Securities and Exchange Commission a preliminary study. SEC Chairman Mary Schapiro told the press: “It is fair to say that the entire guard to look out.”

JP Morgan CEO Jamie Dimon acknowledged in an interview with U.S. broadcaster NBC error. “We were sloppy. We know that we were stupid. We know that there was a miscalculation, “he said in the TV show” Meet the Press “to be aired on Sunday. He also said it was unclear whether the bank had failed to violate laws or rules. He asserted that the best people in the bank were involved in the matter.

The trail leads to London

This had been a paragon of American money had granted houses applicable Department on Thursday that within six weeks, a loss of at least two billion dollars (1.54 billion euros) ran aground because the investment department gambled with credit default insurance. Next, the bank shocked investors with its admission that the losses could be higher even by one billion.

Incoming search terms:

• jp morgan 15billion