Date
21 September 2017
People throng a money changer on Jan. 15 after the Swiss central bank removed the cap on the nation's currency, sending the franc soaring. Photo: Bloomberg
People throng a money changer on Jan. 15 after the Swiss central bank removed the cap on the nation's currency, sending the franc soaring. Photo: Bloomberg

JPMorgan reaped up to US$300 mln from Swiss turmoil

JPMorgan Chase & Co. made as much as US$300 million after the Swiss central bank abolished the cap on the franc, roiling financial markets.

The bank netted US$250 million to US$300 million on the day of the surprise decision by the Swiss National Bank (SNB) to scrap the franc ceiling of 1.20 against the euro, Bloomberg reported Wednesday, citing people with knowledge of the matter.

A JPMorgan spokesman declined to comment.

On Jan. 15, the SNB removed the three-year-old cap on the nations currency, sending the franc soaring as much as 41 percent against the euro that day.

JPMorgan is one of the few to emerge from the turmoil with a profit.

Citigroup Inc., Deutsche Bank A.G. and Barclays Plc. suffered about US$400 million in cumulative trading losses, the report said.

Morgan Stanley, owner of the world’s largest brokerage, and Goldman Sachs Group Inc. have said the impact of the move was immaterial.

Bank of America Corp. chief executive Brian T. Moynihan told CNBC on Jan. 20 that while the bank had made money, the move had not had a big impact on the firm.

JPMorgan told clients it would complete all orders at 1.02 francs per euro as the Swiss currency appreciated from 1.20 francs per euro to almost 0.85 on Jan. 15, the people said.

The decision allowed traders at the New York-based bank to assess their position immediately and buy or sell the franc accordingly, the people said.

JPMorgan, the world’s biggest investment bank, generated US$2.5 billion in fixed-income trading revenue in the final three months of 2014, down 23 percent from a year earlier.

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