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Shares of US banks tumble on news of JPMorgan's $2B loss in derivatives trading
NEW YORK (AP) ' Shares of banks are tumbling on news that JPMorgan Chase lost $2 billion in the past six weeks in trading on derivatives.
Shortly after Friday's opening bell, JPMorgan Chase & Co. shares dropped more than 9 percent, while Citigroup Inc. shares fell 4 percent.
Goldman Sachs Group Inc. and Bank of America Corp. both dropped about 3 percent.
New York-based JPMorgan said late Thursday that the loss came in a portfolio of the complex financial instruments known as derivatives. The loss also came in a division of the bank designed to help control its exposure to risk in the financial markets and invest excess money in its corporate treasury.
The loss is expected to hurt JPMorgan's overall earnings for the second quarter, which ends June 30.