From NPR News in Washington, I'm Lakshmi Singh.
The fallout from JP Morgan's failed hedging strategy is nearly three times worse than initially estimated. The bank is now reporting a 5.8 billion dollar trading loss. In a conference call to investors, CEO Jamie Dimon says the blunder cuts deep.
I can tell you this has shaken our company to the core and what happened here is that, most of the management team went back and said we've doubled efforts to make sure we are running a great company.
Despite those trading losses, JP Morgan's overall profit was five billion in the second quarter. It's not the only bank with a high earning. Greg Collard of member station WFAE in Charlotte says Wells Fargo pulled in 4.6 billion.
Wells Fargo's net income was up 400 million dollars from the first quarter, even though revenue was down 300 million from 21.6 billion to 21.3 billion dollars. So how did that occur? Layoffs helped. Wells Fargo reports that employee benefit expenses were down nearly 600 million dollars from the previous quarter. Chairman and CEO John Stumpf says the company's benefiting from a diversified business model and signs that the housing market is stabilizing. For NPR News, I'm Greg Collard, in Charlotte.
And the US market's reacting with the Dow up more than 200 points at 12,777 before the close.
In the ongoing probe into big bank's manipulation of a key interest rate years ago, Bank of England's officials confirmed Treasury Secretary Tim Geithner contacted the bank in 2008 with concerns over how the rate was set. NPR's John Ydstie reports Geithner, then President of the New York Fed, apparently suggested changes in the rate setting process.
A memo to a number of press out shows Geithner urging British Bank regulators in 2008 to eliminate incentives for banks to misreport the rates they were paying for short-term loans from other banks. A number of banks, including three big US firms report those numbers daily providing the basis for the LIBOR rate, that rate, in turn, is used as a benchmark for everything from derivatives contracts to credit card and mortgage rate. So it's widely influential. But a scandal has erupted around its accuracy. Barclays, the big British bank has admitted that it falsely reported interest rates to enhance its profits and it has paid fines totaling 453 million dollars in a settlement with US and British regulators. John Ydstie, NPR News, Washington.
There are now conflicting accounts of what unfold in the Syrian village of Taramseh. Residents had said troops killed more than 200 there yesterday but activists have since scaled back that number. Still a villager says through an interpreter there was a massacre.
At 4 o'clock when it erupted We were sleep We didn't really think about it. At five o'clock there should be hanged then, the army then went inside and they killed everyone. They didn't distinguish between old people or babies or children and women.
Syrian government blames the violence on armed terrorists.
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