Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Fitch Downgrades JPMorgan

RELATED NEWS
Trade JPM now with 

Fitch Ratings said Friday that it has downgraded JPMorgan Chase & Co.'s (JPM: Quote) Long-term Issuer Default Rating to 'A+' from 'AA-' and its Short-term IDR to 'F1' from 'F1+'.

Fitch also has placed all parent and subsidiary long-term ratings on Rating Watch Negative.

The rating actions follow JPMorgan's disclosure Thursday of a $2 billion trading loss on its synthetic credit positions in its Chief Investment Office. The positions were intended to hedge the company's overall credit exposure, particularly during periods of credit stress.

While Fitch views the size of loss as manageable, it said the magnitude of the loss and ongoing nature of these positions implies a lack of liquidity. "It also raises questions regarding JPM's risk appetite, risk management framework, practices and oversight; all key credit factors", the rating agency noted.

Fitch believes the potential reputational risk and risk governance issues raised at JPMorgan are no longer consistent with an 'AA-' rating.

Click here to receive FREE breaking news email alerts for JPMorgan Chase & Co. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
LinkedIn Corp., the world's largest online professional network, said Thursday after the markets closed that its third quarter loss widened slightly from last year, as higher costs and expenses more than offset a 45% increase in revenue. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue. After ending the previous session modestly lower, stocks moved mostly higher over the course of the trading day on Thursday. The gains on the day more than offset yesterday's losses, lifting the major averages to their best closing levels in a month. Sen. Lindsey Graham, R-S.C., is seen as a long shot for the Republican presidential nomination in 2016, and his chances may have gotten worse after he was recorded joking about the prospects for "white men" if he were elected president.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.