The “morgue” is full of blood!

The \”morgue\” is full of blood!

The nation’s largest bank has said publicly that its losses on the trades have surpassed $2 billion and they could over time reach $5 billion. But the losses could be even bigger since the company is selling its positions into a market that has turned against him.. The bank has already said it will take its time in unwinding its positions, and trading in the credit index that JP Morgan’s trade centers on has been less active in recent days.. JP Morgan’s decision to move slowly in unwinding the positions highlights a painful dilemma for the company and Chief Executive James Dimon: The bank can move slowly and risk being bled by small but regular losses over time, or it can attempt to close out the trades sooner but face potentially larger losses. Moving slowly also holds risks if the market turns sharply against the bank in the near term. The company is holding derivative wagers with a face value of roughly $100 billion in a derivative index tracking the health of corporate debt. These wagers include long and short positions, or bets that index will either rise or fall, from various parts of the firm. Thus, if nervousness increases about the credit-worthiness of the investment-grade- rated companies making up the index, the bank’s overall losses would likely grow. JP Morgan’s situation is complicated by the fact that it controls a big percentage of the outstanding trades on the index. According to data from IntercontinentalExchange Inc., which operates a clearinghouse for ……