JPMorgan Chase's Other $4.4 Billion
Jul 14th 2012 2:30PM
Updated Jul 14th 2012 2:38PM
The big headlines after JPMorgan Chase's earnings release shouted out its $4.4 billion in trading losses in the second quarter.
Behind the scenes, that $4.4 billion was perfectly matched by "$1.0 billion of securities gains in CIO and a $545 million gain on a Bear Stearns-related first-loss note ... [and] $755 million of DVA gains, reflecting adjustments for the widening of the Firm's credit spreads which, as we have consistently said, do not reflect the underlying operations of the Firm. The Firm also reduced loan loss reserves by $2.1 billion, mostly for the mortgage and credit card portfolios."
That ain't a coincidence. Fool banking analyst Anand Chokkavelu explains in the following video.
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At the time this article was published Anand Chokkavelu owns shares and warrants of JPMorgan Chase. The Motley Fool owns shares of JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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