JPMorgan’s finance chief said Friday that the loss from the bank’s chief investment office’s errant trades has totaled $5.8 billion so far this year.
Traders involved in the loss could lose as much as two years of income and no longer work at the bank, according to JPMorgan. All of the managers involved with the trades have been “separated” from the bank, without any severance.
JPMorgan said losses totaled $4.4 billion in the second quarter.
When the losses were first revealed on May 10, CEO Jamie Dimon pegged them at around $2 billion but said they could move higher.
On Friday, bank executives said they’re no longer confident in the figures reported by the CIO and that the bank would be restating its first-quarter earnings. The restatement will reduce first-quarter net income by $459 million.
“This has shaken our company to the core,” Dimon told analysts.
Despite the multibillion loss, JPMorgan reported a 8.7% decline in net income of $5 billion, or $1.21 per share, on $23 billion of revenue during the quarter.
Analysts had expected earnings per share of 72 cents and revenue of $22 billion.
Dimon said the bank’s CIO would no longer trade derivatives, which were behind the big loss.