Major bank stocks fell sharply on Friday after JPMorgan Chase surprised investors by announcing a $2 billion trading loss.
JPMorgan's stock dropped 9 per cent in early trading, the most of the 30 stocks in the Dow Jones industrial average.
Citigroup Inc. shares fell 4 per cent. Goldman Sachs Group Inc. and Bank of America Corp. both dropped about 3 per cent. 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.
