$5.8B Loss Reignites Doubts About JPMorgan's Management

Law360, New York (July 13, 2012, 6:42 PM EDT) -- JPMorgan Chase & Co.'s Friday announcement that it lost $5.8 billion on bad credit derivative bets and its restatement of prior earnings reports have reopened the question of whether the bank is, in fact, too big to manage, this time from the financial industry.

The losses stemmed from a disastrous credit derivative trade entered into by JPMorgan's Chief Investment Office, which was handling excess deposits the bank had on hand. The company also was forced to restate its first-quarter financial statements, lowering its earnings for the...
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