NEW YORK —JPMorgan Chase said Friday that a bad trade had cost the bank $5.8 billion this year, almost triple its original estimate, and raised the prospect that traders had improperly tried to conceal the blunder.
“This has shaken our company to the core,” chief executive Jamie Dimon said.
The bank said managers tied to the bad trade had been dismissed without severance pay and that it planned to revoke two years’ worth of pay from each of those executives.
JPMorgan said it had lost $4.4 billion because of the trade from April through June, and its chief financial officer said the bank had lost an additional $1.4 billion in the first three months of the year.
Dimon’s original estimate of the loss from the bad trade, disclosed in a surprise conference call with Wall Street analysts in May, was $2 billion.
On Friday, Dimon said he believed the loss was mostly contained. In the worst case, if financial markets deteriorate severely, the bank could lose an additional $1.7 billion, he said. That would bring the total loss to $7.5 billion.
Investors appeared relieved that the mess was mostly behind the bank. They sent JPMorgan’s stock price up $2.03, or almost 6 percent, to close at $36.07 Friday.
The bank said that it was reducing its net income for the first quarter by $459 million because it had discovered information that “raises questions about the integrity” of values placed on certain trades.
Overall, JPMorgan said it earned $5 billion, or $1.21 per share, for the second quarter, which covers April through June and includes the bank’s disclosure of the trading loss May 10.
Analysts surveyed by FactSet, a provider of financial data, had expected the bank to earn 76 cents per share.
