JPMorgan loss now $5.8 billion; Wall Street rejoices
Jul 13, 2012
NEW YORK — JPMorgan Chase blew away a cloud of concern hanging over the banking industry Friday and set off a rally in stocks. Relieved investors drove up bank stocks, ended a six-day losing streak for the market and sent the Dow Jones industrial average up 204 points, the best day this month.
JPMorgan jumped 6 percent, the biggest gain in the Dow by far....
JPMorgan revealed that the loss from a derivative trade it first disclosed in May had grown to $5.8 billion, nearly triple the original estimate. Its stock shot up $2.03 to $36.07....
No, don't even try to figure it out. I suppose the traders were worried about the $19 billion estimate some were giving, and so they were ecstatic that it is only $5.8 billion--SO FAR. Jamie Dimon is still saying that "it could go higher." Perhaps if the loss reaches $10 billion, the stock market will go up 400 points.
Dr. Stephen Jones