(Reuters) - JPMorgan Chase & Co, the biggest U.S. bank, posted $4.4 billion of losses from its "London Whale" trades, but also said some of its traders might have tried to conceal bad credit bets in the first quarter.
The disclosure was the first indication the bank has made that the problems in its Chief Investment Office may have extended beyond bad risk management and bad judgment about markets. JPMorgan said it had cleaned up the CIO and that the problems were isolated to the group. The bank said it might generate another $700 million to $1.7 billion of losses from the credit derivatives trades. (SO THERE'S MORE TO COME?)
The CIO mis-valued its credit derivatives positions in the first quarter, which overstated the group's net income by $459 million for that period, JPMorgan said. (With supposedly the best people in the business working at JPM, how do they manage to MIS-VALUE their positions by hundreds of millions, even billions of dollars? Perhaps, it's not mis-valuation, it's plain old fraud!)