If you’ve wondered what investment banks have been doing with those hard earned bail-out tax dollars lent to them by the Federal Reserve and US government at nearly zero percent interest, here’s your answer and a demonstration in how to vaporize the GDP of a small nation in just a few  weeks’ time.

In an unexpected after hours call with investors CEO Jamie Dimon said JPMorgan was facing massive losses – legal losses of $4.2 billion were reasonably possible, he said — with trading losses totaling $800 million in the second quarter.

And Dimon said it could take until the end of the year to restructure the portfolio.

Although information was still coming together at the time of writing, the Fast Money traders say developments look like they’re a game changer.

…

“I can almost guarantee it’s not just JPMorgan.” adds trader Guy Adami.

“JPMorgan looks like it’s going to bring down the entire space,” adds Steve Grasso.

In other words, all the traders are expecting financials to sell-off broadly on Friday.

“The sector hasn’t been doing well anyway,” explains Steve Grasso. “The group has been breaking down. This feels like it could be a nail in the coffin.”

Source: CNBC

CEO Jamie Dimon:

…”egregious mistakes”

…”self inflicted”

…”could easily get worse”

Via Reuters:

Look out below because this one has traders spooked and it could be a Lehman-like domino that causes a widespread market panic.

Hattip Satori