|DANIEL WAGNER, AP Business Writer|
U.S. markets slid Friday after
"The portfolio has proved to be riskier, more volatile and less effective as an economic hedge than we thought," CEO
The trading loss is an embarrassment for a bank that came through the 2008 financial crisis in much better health than its peers. It kept clear of risky investments that hurt many other banks.
The loss came in a portfolio of the complex financial instruments known as derivatives, and in a division of
Dimon said the losses were "somewhat related" to that story, but seemed to suggest that the problem was broader. Dimon also said the company had "acted too defensively," and should have looked into the division more closely.
Hedge funds were betting that the index would lose value, forcing
Partly because of the
The loss is expected to hurt
"We will admit it, we will learn from it, we will fix it, and we will move on," he said. Dimon spoke in a hastily scheduled conference call with stock analysts. Reporters were allowed to listen.
Among other bank stocks,
Dimon said the type of trading that led to the
The Federal Reserve said last month that it would begin enforcing that rule in
Some analysts were skeptical that the investments were designed to protect against