NEW YORK - JPMorgan Chase now says a bad trade has cost it $5.8 billion this year. That's almost triple the $2 billion estimate the bank gave when it revealed the blunder in May.
The nation's biggest bank also says an internal investigation has called into question the values that traders placed on certain bets, and that the traders may have been trying to hide the losses.
It says it's reducing its net income for the first quarter by $459 million after discovering information that "raises questions about the integrity" of values placed on certain trades.
The bank says managers tied to the bad trade have been dismissed without severance pay and that it plans to revoke two years' worth of pay from each of those executives.
CEO Jamie Dimon (DY'-muhn) told analysts today the bank isn't making light of the error, but believes it's "an isolated event."
He says the division responsible for the bad trade has been closed and the remainder of the trading position has been put under its investment banking division.
Despite the huge loss, JPMorgan posted net income of $5 billion for the most recent quarter, easily topping Wall Street's forecasts. Its stock is trading higher today.
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