JP Morgan stock plummets after reports of bigger trade losses

 
Marion Dakers
SHARES in JP Morgan plunged 2.45 per cent yesterday on reports that its London Whale derivatives trading loss could end up costing the bank much more than first thought.

JP Morgan, which declined to comment, said it expected to lose at least $2bn on a bungled credit derivatives trade when it disclosed the position in May.

But reports yesterday in the US media suggested that the total loss could balloon to more than twice initial estimates to around $5bn.

Chief executive Jamie Dimon told Congress last week that JP Morgan would be “solidly profitable” in the third quarter in spite of the trade, which the bank is working to unwind.

The bank boss has pledged to give a fuller picture of the situation on 13 July, alongside the firm’s second-quarter results.

Shares in the bank closed at $35.88 yesterday.