JPMorgan Chase & Co has sold an estimated $25 billion of profitable securities in an effort to prop up
earnings after suffering trading losses tied to the bank's now-infamous "London Whale," compounding the cost of those trades.
CEO Jamie Dimon earlier this
month said the bank sold corporate bonds and other securities, pocketing
$1 billion in gains that will help offset more than $2 billion in
losses. As a result, the bank will not have to report as big an earnings
hit for the second quarter.
The
sales of profitable securities from elsewhere in the bank's investment
portfolio will increase its costs by triggering taxes on the gains and
by eliminating future earnings from the securities.
More
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.