JPMorgan losses reach nearly $6bn

JPMorgan Chase
JPMorgan Chase

UNITED States bank JPMorgan Chase has admitted that losses from botched derivatives trades have soared to $5.8 billion ($US5.6 billion), nearly triple the cost originally predicted, with a warning of more red ink to come.

The losses, which were linked to a British unit that included a trader dubbed "the London Whale", were originally forecast to set the firm back at least $2 billion.

The new figures were revealed as the bank reported profits for the second quarter that slid to $US5 billion, a drop of 9 per cent compared with the same period a year earlier.

The bank also revised down first-quarter earnings by $US459 million.

Chief executive Jamie Dimon said JPMorgan had "significantly reduced" the risk from the mismanaged derivatives hedging scheme, even as it sought to quickly unwind the positions.

Read more at ABC news online.

Topics:  banking

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