NEW YORK — JPMorgan Chase shares tumbled nearly 10 percent Tuesday as the bank’s disclosure about escalating losses in its mortgage portfolio set off new concerns about the health of the overall financial sector. An analyst’s lowering of the bank’s earnings estimates and price target contributed to the decline.
JPMorgan Chase plunged $3.88, 9.3 percent, to close at $38.01. It has traded between $29.94 and $49.95 in the past year.
In a Securities and Exchange Commission filing late Monday, the bank said turbulence in the credit markets has caused it to lose about $1.5 billion, after hedges, in its mortgage-backed securities and loans to date in the July-to-September quarter.
Ladenburg Thalmann analyst Dick Bove cut his full-year profit estimate on the bank to $2.23 a share from $2.46 a share. Analysts polled by Thomson Reuters, on average, forecast earnings of $2.47 a share in 2008. The Associated Press
