Trading loss of global financial services firm JPMorgan Chase & Company may touch $9 billion, much higher than previous estimates of $2 billion disclosed last month, according to a media report.
"Losses on JPMorgan Chase's bungled trade could total as much as $9 billion, far exceeding earlier public estimates," The New York Times reported citing source.
The daily said that in April the US-based bank generated an internal report that showed that the losses, assuming worst-case conditions, could reach $8 billion to $9 billion.
The losses has been mounting in recent weeks as the bank has been unwinding its positions, the report said citing sources.
In May, the banking entity announced that it had lost $2 billion in derivative trading and estimated that loss could double in next few quarters.
The daily reported that JPMorgan plans to disclose part of the total losses on July 13, when it reports second-quarter earnings. The bank had reported a first quarter profit of $5.4 billion.
"Despite the loss, the bank has said it will be solidly profitable for the quarter - no small achievement given that nervous markets and weak economies have sapped Wall Street's main businesses," the daily said.
The bank's exit from its money-losing trade is happening faster than many expected. JPMorgan previously said it hoped to clear its position by early next year; now it is already out of more than half of the trade and may be completely free this year, the report added.
According to the publication, bank's spokesperson declined to comment on the issue.
