Fitch downgraded today step their letter to JPMorgan Chase to “A +” and Standard & Poor’s maintained its rating to “A” but with a negative outlook, a day after the bank acknowledged that a mistake “egregious “on its derivative transactions caused him a loss of 2,000 million dollars.
“Fitch views the size of these losses manageable, but the magnitude and nature of these positions imply a lack of liquidity,” Fich said in a press release announcing that the rating of the largest U.S. bank by assets passes ” AA-”(outstanding high) to” A + “(remarkably high).
The agency added that the losses announced yesterday by the bank, which collapsed today in the New York Stock Exchange nearly 10%, raises questions about “their appetite for risk, its risk management framework, practices and supervision” , which led it to downgrade to “A +”.
Fitch added that the new note which gives JPMorgan Chase continues to reflect the bank’s dominant position in the domestic market and the “strength and resilience” of its business abroad in both the commercial banks as the banking investment.
Finally, on the negative outlook on which stood the bank, the rating agency was convinced that could result in a further reduction of a step on your score if the governing body of Jamie Dimon, does not address properly the risks .
Meanwhile, the agency S & kept the note from the bank “A” (outstanding), but lowered its outlook from stable to negative, because they may occur more problems in the hedging strategy of JPMorgan Chase, which “not is consist with their vision of their risk management practices. ”
“The negative outlook reflects the increased concerns about calculation errors related to its hedging strategy (…) as well as uncertainty about a possible weakness in risk management,” the agency Standard and Poors said in a statement release.
Finally, he warned that a step will lower the note that gives the bank if they determine that the errors are not limited to the portfolio of the Investment Management Office or if they detect that management seeks a more aggressive investment strategy than initially expected.
Shares of JPMorgan Chase, the largest U.S. bank by assets, fell today at the New York Stock Exchange 9.28%, a day after admitting in a document with the SEC an error “egregious” in its derivative transactions that caused losses of at least 2,000 million.
The bank’s problems led to the opening of a preliminary investigation by the Securities and Exchange Commission of USA (SEC) to reopen the debate on the need to impose greater controls on U.S. banks.