JPMorgan Loses $1.5 Billion Since July on Falling Debt Prices

By Cathy Chan, Bloomberg

JPMorgan Chase & Co. will write down at least $1.5 billion this quarter because the continued disruption in credit and mortgage markets reduced the value of its debt portfolios, the bank said in a regulatory filing.

The New York-based investment bank said trading conditions “have substantially deteriorated” since July compared with the second quarter, and “sharply widened” spreads on mortgage- backed securities and loans caused the company to incur the losses, excluding hedges, the filing said.

JPMorgan, the second-biggest U.S. bank by market value, held $16.3 billion of legacy leveraged loans and unfunded commitments as of June 30, the filing said. Read more….