Steven Rattner writes:
offsetting the $2bn loss (which Mr Dimon acknowledged could eventually be more) was at least $1bn of profits from other, similar activities.
More importantly, even at $2bn, the loss represents only about 20 per cent of JPM's pre-tax profit in the first quarter of 2012 alone and a bit more than 1 per cent of its equity market value.
So this loss never endangered JPM or its depositors, let alone any other banks or financial institutions. We need to accept without panicking that a bank –particularly one as large and as well capitalised as JPM – may from time to time lose $2bn in a non-systemic misstep. Far more was lost by banks from old-fashioned corporate loans turning sour during each of the last two recessions. Banking has always involved risks and always will.
Fourth, to those who say Wall Street never pays for its mistakes, please take note of JPM's shareholders (many of them employees), who saw $14bn lopped off the value of their holdings in Friday's trading.