Investment bank JPMorgan Chase & Co. lost $1.5 billion so far in the third quarter due to mortgage-related writedowns. The stock price dropped $2.63 to $39.26, reports Chicago Sun-Times.
Wall Street slid Tuesday as downbeat news from JPMorgan Chase & Co. and other financial companies increased the market’s nervousness about the continuing impact of the credit crisis on the economy. The Dow Jones industrials fell nearly 140 points.
The latest reminder of continuing troubles for banks and brokerages came when JPMorgan said late Monday it has incurred wider losses in its mortgage holdings so far in the third quarter than in the second quarter. The nation’s second-largest bank by assets said in a regulatory filing it lost $1.5 billion, after hedges, in its mortgage-backed securities and loans this quarter, compared to $1.1 billion in the second three months of 2008.
The full story is available at the Chicago Sun-Times web-site.