‘London Whale’ loss balloons to $US5.8 billion

“This has shaken our company to the core,” CEO Jamie Dimon said.

The bank said managers tied to the bad trade had been dismissed without severance pay and that it planned to revoke two years’ worth of pay from each of those executives.

ADVERTISEMENT

JPMorgan said it had lost $US4.4 billion because of the trade from April through June, and its chief financial officer said the bank had lost an additional $US1.4 billion in the first three months of the year.

Mr Dimon’s original estimate of the loss from the bad trade, disclosed in a surprise conference call with Wall Street analysts on May 10, was $US2 billion.

The bank said an internal investigation, including emails and voice messages, had called into question the values that traders placed on certain bets, and that the traders may have been seeking to mask losses.

The Securities and Exchange Commission and Justice Department did not immediately respond to requests for comment.

Mr Dimon told Congress last month that the trade was meant to hedge risk to the company and protect it in case “things got really bad” in the global economy. Instead, the trade has backfired and damaged the bank’s reputation.


Notice an issue?

Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.


ADVERTISEMENT
Just in:
Nvidia is the dream stock of our lifetime! // Celebratory 911 Club Coupe Marks Half-Century Porsche Partnership // Can India Emerge As The Trusted Leader Of Global South Like Earlier Years? // BRICS Pledge Cooperation, Not Confrontation With U.S. // Tokyo Real Estate Set for $75 Million Blockchain Shake‑Up // Dong Yuhui’s Fujian Journey: The Sea’s Lesson – 30% Destiny, 70% Determination // Coffee Chains Join Bitcoin Mania with Bold Treasury Moves // ICONSIAM Showcases Thai Creativity to the World with “Lost in DOMLAND” — Reinforcing Its Role as a Must-Visit Global Art Destination // Galaxy AI Elevates On‑Device Intelligence with Privacy at Core // Sharjah Elevates Real‑Estate Platform with New Digital Portal // ADNOC Gas Signs $400 Million LNG Deal with SEFE // OPEC+ Eyes Pause in Production Rises After September Surge // Nigeria’s Coastal Highway Passes $747 m Funding Milestone // Anhui Unveils Teaser for 2025 World Manufacturing Convention, Extending a Global Invitation to Innovate Together // UAE Hits Milestone with EU Delisting From High‑Risk Financial Watchlist // Air Arabia Reinitiates Sharjah–Damascus Flights // Musk Alleges Grok Was Misled and Predicts Tech Breakthroughs // IIT Delhi and TeamLease EdTech Kick‑start AI for Healthcare Executive Programme // Results of the ixCrypto Index Series Quarterly Review (2025 Q2) & IX Digital Asset Industry Index Series Half Yearly Review (2025 1H) // BoE charts new wholesale terrain for stablecoins and tokenised assets //