JPMorgan (JPM) is Selling Billions in Other Investments as it Stubbornly Sits On Losing Trade
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JPMorgan (NYSE: JPM) is selling out of profitable trading position to cover the cost of its 2 billion dollar trading blunder, according to reports. It is estimated that the company sold $25 billion in profitable securities in an effort to relieve shareholder worries that its poor trades in credit markets could jeopardize earnings, reports Reuters.
In the past, JPMorgan CEO Jamie Dimon has made it clear to investors that he would not be quick to unwind these trades despite being under water by as much as $3 billion. But analysts have been quick to rip into Dimon, calling the decision to sell profitable positions to cover unprofitable ones stupid.
Paul Miller of FBR Capital Markets thinks the bank should "just take the pain" of reporting lower profits.
Recently, Dimon announced that he was stopping the company buy-back program valued at $15 billion to shore-up the banks capital position.
Although it hasn't been an issue, Dimon is apparently concerned about showing the market that the company is both profitable and liquid, and this combined with the bank's huge balance sheet and stubbornness is what he is using to fight back against hedge funds that are on the other side of the botched credit derivatives trade.
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In the past, JPMorgan CEO Jamie Dimon has made it clear to investors that he would not be quick to unwind these trades despite being under water by as much as $3 billion. But analysts have been quick to rip into Dimon, calling the decision to sell profitable positions to cover unprofitable ones stupid.
Paul Miller of FBR Capital Markets thinks the bank should "just take the pain" of reporting lower profits.
Recently, Dimon announced that he was stopping the company buy-back program valued at $15 billion to shore-up the banks capital position.
Although it hasn't been an issue, Dimon is apparently concerned about showing the market that the company is both profitable and liquid, and this combined with the bank's huge balance sheet and stubbornness is what he is using to fight back against hedge funds that are on the other side of the botched credit derivatives trade.
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