JPMorgan's Errors Cost Firm $2 Billion: Hot Trends
NEW YORK (TheStreet) -- Popular searches on the Internet Friday include Jamie Dimon after the CEO of JPMorgan Chase (JPM) announced the firm lost $2 billion after errors were made in its risk management unit.
In an unscheduled conference call Thursday, Dimon revealed that JPMorgan's Chief Investment Office suffered the loss in its synthetic credit portfolio, offset by a $1 billion securities gain. The loss was the result of the unit's failed attempt to re-hedge its portfolio.
As a result, JP Morgan could post after-tax losses of $800 million. The bank had previously issued a guidance of plus or minus $200 million. JP Morgan will continue to reposition its portfolio and indicated that volatility from doing so could result in up to $1 billion in losses during this quarter.
Visa reported a 30% rise in earnings per share; first-quarter net income was $1.3 billion, or $1.60 a share, beating expectations.
MasterCard reported earnings growth of 25% in the first quarter. It had revenue of $1.76 billion, which surpassed expectations.
International growth helped drive both companies' results, as overseas customers increased their credit card spending faster than American customers.
The results also emphasize a declining use of debit cards, as banks no longer encourage them, and less and less people who use cash in favor of credit cards.
Procter & Gamble(PG) is another popular search upon news the company is moving its beauty unit to Singapore.
The company is making the move from Ohio to Singapore to be closer to the growing Asian market, where it sees the most opportunity for growth. The relocation is expected to take two years and will include the top leadership at the unit -- about 20 jobs.
The chatter on Main Street (a.k.a. Google, Yahoo! and other search sites) is always of interest to investors on Wall Street. Thus, each day, TheStreet compiles the stories that are trending on the Web, and highlights the news that could make stocks move.
-- Written by Brittany Umar.