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.