NEW YORK ( TheStreet) -- Jamie Dimon is properly embarrassed and apologetic about JPMorgan's (JPM - Get Report) $2 billion trading loss in European credit derivative securities. Although Congress, the regulators and the public are all properly concerned and seeking to discover how America's best-run bank could have made such an error, each of them must bear in mind that there is no cause for panic because of this loss.For example, $2 billion or $3 billion is a lot of money even on Wall Street. But when judged relative to JPMorgan's size, the loss is not as onerous. A loss of $3 billion would equal about 2.2% of JPMorgan's stock market capitalization of $131.25 billion and less than 0.15% of its assets, which total over $2 trillion. Similarly, although this loss will reduce the profits earned this quarter by JPMorgan, the bank will still be in the black this quarter, even after the impact of the trading loss.
JPMorgan's Loss Provides Lessons for Reformers
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts