NEW YORK - JPMorgan Chase, the largest bank in the United States, said Thursday that it lost $2 billion in a trading portfolio designed to hedge against risks the company takes with its own money.
The company’s stock plunged more than 6 percent in late electronic trading after the loss was disclosed.
“The portfolio has proved to be riskier, more volatile, and less effective as an economic hedge than we thought,’’ chief executive Jamie Dimon said. “There were many errors, sloppiness, and bad judgment.’’
Dimon spoke in a hastily scheduled conference call with stock analysts. Reporters were allowed to listen.
Partly because of the $2 billion trading loss, JPMorgan said it expects a loss of $800 million this quarter for a segment of its business known as corporate and private equity. It had planned on a profit for the segment of $200 million.
The loss is expected to hurt JPMorgan’s overall earnings for the second quarter, which ends June 30. Dimon apologized for the losses, which he said occurred since the first quarter, which ended March 31.
JPMorgan is trying to unload the portfolio in a “responsible’’ manner, Dimon said, to minimize costs to its shareholders.