Another week another banking fiasco
From Wall Street Journal: "J.P. Morgan Chase & Co.'s second-quarter earnings fell 8.7% from a year ago, on a double-digit decline in revenue and a $4.4 billion trading loss at its Chief Investment Office.
The U.S.'s largest bank by assets also said it would restate its first-quarter results to reduce profits and revenue, amid questions about how traders at the unit marked their positions. Including the restatement, total losses on the Chief Investment Office trading hit $5.1 billion in the first half of 2012.
Recap: The J.P. Morgan Call
J.P. Morgan blocked off a two-hour conference call to talk with analysts and investors. Deal Journal live-blogged the call.
Whale & Co. Go
Three London-based employees at the center of J.P. Morgan Chase's multibillion-dollar trading blunder, including one known as the "London whale," have left the bank, according to people familiar with the company.
Risk Measures Go Under Spotlight
Investors are watching closely to see what J.P. Morgan says about how its risk management fell down on the job—and why it changed to a method of measuring risk that effectively helped obscure its losses for months.
Finance chief Doug Braunstein on Friday put the trading loss through Thursday at $5.8 billion.
The bank said the restatement of first-quarter results reflects "recently discovered information that raises questions about the integrity of the trader marks and suggests that certain individuals may have been seeking to avoid showing the full amount of the losses in the portfolio during the first quarter."
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