About $US2 billion was lost by JPMorgan Chase, US’ largest bank, in a trading portfolio, according to the company. The same portfolio was designed to protect the company against the risks it takes in relation to its money.

After the loss was announced on Thursday, a plunge of more than 6 percent in the company’s stocks in the late electronic trading was recorded. It was not only the JPMorgan Chase that felt the losses. Other companies also felt the same like Citigroup and the Bank of America.

"The portfolio has proved to be riskier, more volatile and less effective as an economic hedge than we thought. There were many errors, sloppiness and bad judgment,” CEO Jamie Dimon said during a conference with stock analysts where journalists were allowed to listen.

JPMorgan furthermore states that it is expecting to lose $US800 million during this quarter due partly to the $US2 billion loss. The loss will be for a segment of its corporate and private equity business. Instead of an expected $US 200 million profit for the segment, the above stated amount is expected.

It is a definite thing for JPMorgan’s overall earnings for the second quarter, which ends on June 30, to be hurt from this loss. However, Dimon apologizes for such losses saying that these have already started occurring since the first quarter which ended last March 31.

Other stocks that also had losses include Citigroup with 3.2 percent of losses, Morgan Stanley which went down by 2.9 percent, and Goldman Sachs that went down by 2.7 percent.

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