JP Morgan Has Already Lost $1.5 Billion So Far This Quarter

Poor “trading conditions” since the end of June have already cost JPMorgan more than $1.5 billion.

Reuters: JPMorgan Chase & Co incurred losses of about $1.5 billion for the quarter to date, as it continued to be hurt by wider credit spreads, lower levels of liquidity, as well as the disruption in the credit and mortgage markets, the U.S. investment bank said in a regulatory filing.

The third-largest U.S. bank said trading conditions have “substantially deteriorated” in the third quarter compared with those of the second, and spreads on mortgage-backed securities and loans have “sharply widened.”

In addition, if the firm’s own credit spreads tighten, the change in the fair value of certain trading liabilities would also negatively affect trading results, the company said.

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