Morning Business Memo:
Trading losses at JP Morgan Chase may be much bigger than previously reported and may have ballooned to as much as $9 billion, reports The New York Times. “The red ink has been mounting in recent weeks, as the bank has been unwinding its positions, according to interviews with current and former traders and executives at the bank,” says the Times. JP Morgan’s massive loss has added to the debate over bank regulations, and whether some “too big to fail firms” are making very risky trades.
And then there’s Barclays… The global bank has been hit with $453 million in fines by US and British regulators for manipulating the price of key interest rates linked to global loans and financial contracts. The international investigation into trading activities at other big banks continues. Regulators have been looking into how the Libor and Euro Interbank Offered Rates are set. HSBC, RBS, Lloyds, Citigroup and JP Morgan Chase are also reported to be under investigation.
A downgrade this morning for several big banking firms by Moody’s. Citigroup, Goldman Sachs and Bank of America all received downgrades by the ratings firm, which sites growing risk from weak economic conditions as well as the cost of tougher regulations.
European leaders are in Brussels for their two-day summit meeting. They’re likely to agree on a series of proposals to boost economic growth, but a breakthrough on the pooling of debt is unlikely.
Do you have a credit card complaint? The new database run by The Consumer Financial Protection Bureau has been up and running for about a week. John Ulzheimer, President of Consumer Education at SmartCredit.com says the government site is consumer-friendly. “They’re not going to win any awards for website design but it certainly is very easy and functional for a consumer to use.” While you can file a complaint about fees or rates with your credit card issuer, “I would venture a guess that you would get much more expedited response, like I did, if you file it directly through the CFPB,” says Ulzheimer. Click here to file a complaint.
Richard Davies Business Correspondent ABC NEWS Radio ABCNews.com twitter.com/daviesabc