JPMorgan Down on '$9 Billion' Loss Estimate (Update 1)

Updated with current market information and reaction from Wells Fargo analyst Matthew Burnell.

NEW YORK (TheStreet) -- Shares of JPMorgan Chase (JPM) were down 5% in afternoon trading on Thursday to $35.10, after the New York Times reported that the company's hedge trading losses could reach as high as $9 billion.

JPMorgan CEO James Dimon announced the company's Chief Investment Office's trading losses after the market close on May 10, estimating "slightly more than $2 billion" for the second quarter. With the company having already "out of more than half the trade," the company has projected losses, "assuming worst case conditions," of between $8 and $9 billion, according to the Times, citing an unnamed source who reviewed an internal company report.

The Times also said that with "much of the most volatile slice of the position sold," regulators are "unsure how deep the reported losses will eventually be, with some expecting ultimate losses of between $6 billion and $7 billion.

Dimon said on May 21, following his announcement that JPMorgan Chase was suspending its share repurchase program, that he expected the company to be "solidly profitable" for the second quarter.

JPMorgan Chase's shares closed at $36.78 Wednesday, returning 12% year-to-date, following a 20% decline in 2011. The shares were down 10% since closing at $40.74 on May 10, before Dimon disclosed the trading losses, recovering from a closing low of $31.00 on June 4.