WASHINGTON (AP) -- More than three years after the financial industry almost collapsed, the colossal, $2 billion misfire at JPMorgan Chase is being cited by critics as proof that big banks still do not understand the threats posed by their own speculation.
JPMorgan Chase faces intense criticism for claiming that the loss was the result of a sloppy but well-intentioned strategy to manage financial risk.
JPMorgan's disclosure Thursday recharged a debate about how to deal with big banks. And while the loss isn't like the 2008 events, but it shook the confidence of the financial industry.
Within minutes after trading began on Wall Street, JPMorgan stock had lost almost 10 percent, wiping out about $15 billion in market value. It closed down 9.3 percent. Other bank stocks also lost ground.
Fitch Ratings downgraded the bank's credit rating, while Standard & Poor's cut its outlook JPMorgan to "negative."
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