JP Morgan Suffers $2 Billion Trading Loss

Here’s a story that’s not really related to mortgages or foreclosures, but is about one of the world’s largest banks, JP Morgan.  J.P. Morgan CEO Jamie Dimon recently admitted that it suffered a loss of $2 billion in what is best called proprietary trading.  These trades were intended to be a hedge against risk.  In reality, they were more likely bests placed for JP Morgan’s own benefit.

In case the numbers haven’t sunk in yet, that’s $2 BILLION, with a “B.”  That’s like betting $2,000,000,000.00 on black only to have the roulette wheel comes up red.

Needless to say, JP Morgan’s hedges backfired spectacularly.

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