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Bloomberg reported JPMorgan Chase & Co. lost about $2 billion on synthetic credit securities after an “egregious’” failure in its chief investment office, which the bank says focuses on hedging.
Bloomberg News first reported April 5 that London-based trader Bruno Iksil had amassed positions linked to the financial health of corporations that were so large he was driving price moves in the $10 trillion market.
According to the report, some bets were so big that JPMorgan probably couldn’t unwind them without losing money or roiling financial markets, according to former executives.