Infographic: JP Morgan Chase and the Loss in Perspective
David C. John /
JP Morgan Chase’s $2 billion loss on a hedging strategy doesn’t mean that the bank is in crisis, and it certainly does not mean the government needs to step in. JP Morgan Chase is a $2.3 trillion bank with a net worth of $189 billion. While the bank’s loss represents a clear failure of management, they are accountable to the shareholders. The loss will be covered by the bank’s capital, just as it should be. Neither the bank nor the financial system was endangered, and no government intervention or additional regulation is needed.
