Thomson Reuters In an already wonky quarter, JPMorgan reported taking a $143 million loss in its equities trading department from a single client. The department had strong equities performance apart from that one loss. The client was identified as Steinhoff International, a South African retailer embroiled in an accounting scandal. Total losses related to Steinhoff could be as much as $273 million. After accounting for effects from the new tax law, JPMorgan posted a solid quarter, announcing earnings of $1.69 share Friday. But in an already wonky quarter, JPMorgan reported an unusual loss not related to the new law: Its equities team took a $143 million loss from a single client. JPMorgan confirmed the loss was connected to the South African retailer Steinhoff International, which is embroiled in an accounting scandal. "It is by far and away the largest loss in that business we've seen since the crisis," CFO Marianne Lake said in an analyst call. Lake confirmed that the corporate and investment bank's $130 million provision for credit loss in the fourth quarter was also attributable to Steinhoff. After accounting for the $130 million in additional credit losses, JPMorgan booked a total of $273 million in losses related to Steinhoff in the fourth quarter. Here's what JPMorgan said about the peculiar loss in its earnings presentation (emphasis ours): "Equity Markets revenue was flat compared to a strong prior year and included the impact of a mark-to market loss of $143 million on a margin loan to a single client.
Jpmorgan Lost $273 Million On A Single Client In The Fourth Quarter (jpm)
feedback@businessinsider.com (Business Insider), Business Insider
Mon, 01/15/2018 - 11:55am
Topics: thomson reuters total cfo marianne lake lake prime services cash equities citigroup hsbc goldman sachs nomura christo wiese wall street journal watch ethereum steinhoff south african jpmorgan lake equity markets wiese million single client fourth quarter quarter jpm loss accounting losses loan related credit embroiled scandal retailer international confirmed law department reported wonky strong corporate shares entity provision largest revenue expected earnings driven controlled banks margin
Welcome to Wopular
Wopular is an
online newspaper rack,
giving you a summary view of the top headlines from the top news sites.
Senh Duong (Founder)
Wopular,
MWB,
RottenTomatoes
MoviesWithButter : Our Sister Site
- "Expendables 4" Starts Shooting This Fall, Says Randy Couture at the Arnold Sports Festival more
- “Expendables 4” Gets Funding Interest from “Ip Man 3” Financier more
- "Ip Man 3" Distributor Suspected of Box Office Fraud, Parent Company Loses $200M in Market Cap more
- Yen Targets "Ip Man 4" for 2018 Release; Discusses Film with Director, Producer more
- "Ip Man 3" Shatters Expectations with $72M Opening [China Box Office] more