JPMorgan shares plunge after $2 billion trading loss
May 12 , 2012
Shares in JPMorgan Chase have plunged 9 percent after the bank revealed a trading loss of $2 billion.
As a result, the biggest U.S. bank’s credit rating and debt was downgraded by the agency Fitch.
Media reports suggest market regulators have already begun investigations into the losses.
According the New York Times, the Securities and Exchange Commission is looking into the bank’s accounting practices and the way in which it updated markets about the loss making trades.
JPMorgan’s losses triggered a downward spiral amongst banking stocks with Citigroup and Morgan Stanley both closing down 4.2 percent and Goldman Sachs falling 3.9 percent.