Morgan, the U.S.'s largest bank by assets, said in its quarterly regulatory filing that a plan it has been using to hedge risks "has proven to be riskier, more volatile and less effective as an economic hedge than the firm previously believed.".(more in artilcle) Morgan shares fell $2.39, or 5.8%, to $38.35 in after-hours trading Thursday. It comes at a time when large banks are fighting efforts by regulators to rein in risky trading with measures such as the so-called Volcker rule. Dimon, who was deemed King of Wall Street during the financial crisis. The loss is a black eye for the bank, which sailed through the financial crisis in better shape than many of its peers, and for Mr. The Wall Street Journal reported last month that large bets-by a London-based trader named Bruno Michel Iksil-being made in that office had roiled a sector of the debt markets. The losses stemmed from derivatives bets gone wrong in the bank's Chief Investment Office, which manages risk for the New York company. has taken $2 billion in trading losses in the past six weeks and could face an additional $1 billion in second-quarter losses due to market volatility, Chief Executive James Dimon said Thursday in a hastily arranged conference call after U.S. A lot of money in this one - and in London as well.
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