JPMorgan Chase's Other $4.4 Billion

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The big headlines after JPMorgan Chase's earnings release shouted out its $4.4 billion in trading losses in the second quarter.

Behind the scenes, that $4.4 billion was perfectly matched by "$1.0 billion of securities gains in CIO and a $545 million gain on a Bear Stearns-related first-loss note ... [and] $755 million of DVA gains, reflecting adjustments for the widening of the Firm's credit spreads which, as we have consistently said, do not reflect the underlying operations of the Firm. The Firm also reduced loan loss reserves by $2.1 billion, mostly for the mortgage and credit card portfolios."

That ain't a coincidence. Fool banking analyst Anand Chokkavelu explains in the following video.


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At the time this article was published Anand Chokkaveluowns shares and warrants of JPMorgan Chase. The Motley Fool owns shares of JPMorgan Chase. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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