Friday, July 13, 2012

JPM's trading losses reach $5.8 billion

Welcome to the morning roundup. Here's a look at today's banking and finance news.

Earnings. Big banks kicked off their earnings season this morning, with Wells Fargo reporting another quarter of record results. JPMorgan Chase & Co., meanwhile, saw second-quarter earnings fall 8.7 percent on a double-digit revenue decline and a $4.4 billion trading loss, the Wall Street Journal reports. Losses on the bank's "London Whale" trading blunder have reached $5.8 billion, the Journal writes.

London Whale. The JPMorgan trader known as the "London Whale" has left the bank, Reuters reports, citing a source familiar with the situation. Bruno Iksil, whose risky bets made him the focus as the bank reported its multibillion-dollar trading loss, was widely expected to depart.

Libor. A dozen global banks linked to the Libor scandal could face up to $22 billion in regulatory penalties and other costs, according to Morgan Stanley estimates, the Financial Times reports. That analysis assumes that 11 banks in addition to Barclays will be penalized in the rate-rigging scandal.

Economic improvement. Experts predict the economy will improve slightly in coming months, citing falling oil prices and improvement in automobiles, housing and other sectors, the New York Times writes. Economists say growth is likely to pick up through the summer and into the fall, though the pace will remain sluggish.

Stock futures climb. U.S. stock futures rose this morning amid speculation that policy makers will boost stimulus measures, Bloomberg reports.