However, by the time he said that, the losses had already risen to $5 billion and he knew that. Also, as soon as the losses came out, JP Morgan’s stock price also fell by around another #30 billion. So, all tolled, the loss of the bad and foolish and risky gambling action cost them between $30 to 35 billion. And surely someone in the very the smart people at JPM must have known that if they lose $5 billion, they will lose even more than that in investor confidence. Surely they knew that.
JP Morgan’s profits last year were in the neighborhood of $90 billion, so the tiny, no big deal loss was one third of their income. That is a VERY big deal.