Fitch Downgrades JP Morgan Bank – 12 May 2012

A 1 notch downgrade means JP Morgan will have to post in the range of $1-$2 billion in new collateral…on top of the $2-3 billion already reported lost on Bruno Iksil’s hedging trade gone bad.

Fitch views JPM’s $2 billion loss as ‘manageable’ Magnitude of loss and ongoing nature implies a lack of liquidity

Fitch Ratings-New York-11 May 2012: Fitch Ratings has downgraded JPMorgan Chase & Co.’s (JPM) Long-term Issuer Default Rating (IDR) to ‘A+’ from ‘AA-’ and its Short-term IDR to ‘F1′ from ‘F1+’. Fitch has placed all parent and subsidiary long-term ratings on Rating Watch Negative.

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