Last Thursday after the market closed, JPMorgan Chase (ticker: JPM) held an emergency conference call with its investors to deliver a shocking revelation.
Jamie Dimon, the CEO of the Whale on Wall Street money-center bank, which is known for its trading expertise and fortress-like balance sheet, disclosed that the bank racked up roughly a $2 billion loss in six weeks from a complex derivative position that “egregiously” failed.
As a result, the Whale and its unsuspecting stock holders got harpooned on the news to the tune of $15 billion in market capitalization as the stock plunged nearly 10% the next day.
Worse yet, the stock has sold off even further, shedding another 4% as of yesterday, as the CEO acknowledged that the losses may escalate as they unwind the massive position.
Adding more pressure: Fitch and Standard & Poor’s have taken negative action on its credit rating...…




