After JPMorgan loss, a call for stricter oversight

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."

Join the Conversation!

To comment, the following rules must be followed:

  • No Obscenity, Profanity, Vulgarity, Racism or Violent Descriptions
  • No Negative Community Comparisons
  • No Fighting, Name-calling, or Personal Attacks
  • Multiple Accounts are Not Allowed
  • Stay on Story Topic

Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.

Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Links require admin approval before posting.
Questions may be sent to Please provide detailed information.

powered by Disqus


6450 Papermill Drive Knoxville, TN 37919 Phone - (865) 450-8888; Fax - (865) 450-8869
Gray Television, Inc. - Copyright © 2014 WVLT-TV Inc. - Designed by Gray Digital Media - Powered by Clickability 151237455 -