JP Morgan's $2 billion loss sends markets lower worldwide

They've got nothing to worry about because they are too big to fail, as we all know. And $2 billion in losses as a result of some bad bets on hedging their position won't break them. Still, it is disturbing to see the cavalier manner in which these big banks take huge risks, knowing they have the American taxpayer as a backstop. Reuters: JPMorgan Chase & Co's shock trading loss of at least $2 billion from a failed hedging strategy knocked financial stocks across the globe on Friday, as well as the reputation of the biggest U.S. bank by assets and its CEO Jamie Dimon. For a bank lauded for navigating the fallout from the 2008 financial crisis without reporting a loss, the errors are embarrassing, especially given Dimon's criticism of the so-called Volcker rule to ban proprietary trading by big banks. Dimon conceded the losses, which could rise by a further $1 billion, were linked to a Wall Street Journal report last month about a London-based trader Bruno Iksil, nicknamed the...(Read Full Post)