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8/09/2012 @ 9:02AM |878 views
JPMorgan Formally Restates Q1 After London Whale Blows Hole In Profits
(Image credit: Getty Images via @daylife)
At the time, JPMorgan said the CIO losses lowered its previously-reported first-quarter profit by some $459 million, and the bank formally restated those results Thursday. As expected, the blow reduced net income for the January-March period to a shade over $4.9 billion. Second-quarter net income was just under $5 billion. (Read JPMorgan’s SEC filing, which includes the restatement, here.)
In the earnings supplement detailing the restatement in July, the bank also said certain traders may have been attempting to pretty up the marks on their positions to avoid showing the full amount of losses in the first quarter, and that its investigation was ongoing.
Shares of JPMorgan Chase are still well below their levels before Chairman and CEO Jamie Dimon disclosed the so-called “London Whale” trading losses in May, but have also recovered from their lows. Shares were down 0.7% at $36.89 in pre-market trading Thursday.
While the CIO trading losses turned heads and renewed the debate over how to regulate the biggest U.S. financial institutions, there has been no shortage of banks behaving badly in the headlines over the past few months. The Libor-fixing scandal that cost Barclays chief Bob Diamond his job continues to fester, and just this week a New York financial services regulator alleged that British bank Standard Chartered conducted thousands of illegal transactions with Iran to the tune of at least $250 billion.
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