JP Morgan’s officially admitted CIO delta risk hedging losses are now growing by $1-2 Billion per day.
CNN states that the losses have likely ballooned to $7 billion.
Perhaps we should start an SD poll for how long until it is admitted the losses are in excess of $100 billion.
(CNNMoney) — One thing seems clear about JPMorgan Chase’s $2 billion loss. It’s no longer $2 billion. It’s likely much higher.
The number being bandied about now is closer to a range of $6 billion to $7 billion, according to several people working on trading desks that specialize in the derivatives JPMorgan Chase (JPM, Fortune 500) used to make its trades and from two sources with knowledge of the bank’s positions.
JPMorgan Chase declined to comment on its trading activities. Of course, it is impossible to know with absolute certainty just how high the losses are at any given moment.
But experts said there are few scenarios in which hedge funds on the other side of the bank’s giant bet will let JPMorgan Chase out of it without significantly more pain.