JP Morgan Chase has sold an estimated $25bn of profitable securities in an effort to boost earnings and recoup some of the $2bn it suffered in trading losses earlier this month.
CEO Jamie Dimon said the bank sold corporate bonds and other securities which generated $1bn that will help offset more than the losses. As a result, the bank will not have to report as big an earnings hit for the second quarter, according to Reuters. The sales of profitable securities from elsewhere in the bank's investment portfolio will increase its costs by triggering taxes on the gains and by eliminating future earnings from the securities. But rather than creating new value for investors, the transactions merely shift gains in securities from one part of the company's financial ...
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