JPMorgan Discloses $2 Billion in Trading Losses

JPMorgan Chase, which emerged from the financial crisis as the nation’s biggest bank, disclosed on Thursday that it had lost more than $2 billion in trading, a surprising stumble that promises to escalate the debate over whether regulations need to rein in trading by banks.

For a bank that earned nearly $19 billion last year, the trading loss, which could go higher, will not cripple it in any way. Still it demonstrates how a market blunder can shake even a financial giant that celebrates its “fortress balance sheet.”

Still the question is: If JPMorgan Chase was in serious financial trouble would the Federal Reserve or the US Treasury come to its rescue? My answer is yes. What’s yours?

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