Will JPMorgan Recover from its Massive Trading Loss?
JPMorgan Chase is leading the Dow today, rising nearly 2 percent to its highest level in nearly a month, as CEO Jamie Dimon testified in front of the Senate Banking Committee on the firm’s May 10 disclosure of a $2 billion trading loss.
In his testimony, Dimon emphasized he believed the loss was “an isolated event” and that “no client, customer or taxpayer money was impacted.” He pointed out that the company expects to be “solidly profitable” in the current quarter.
In the weeks following the revelation of its $2 billion loss, JPMorgan shares fell as much 24 percent from its level prior to the announcement. Although the stock has somewhat recovered after hitting that low on June 4, it is still the worst-performing stock among the major U.S. financial firms.
Dimon has been one of Wall Street’s most recognizable executives since taking the helm at JPMorgan on December 31, 2005. During his tenure, JPMorgan’s shares are down 13% - but that’s a smaller decline than many of the losses suffered by other large banks during the 2008 Financial Crisis.