JPMorgan Chase has warned in a Securities and Exchange Commission filing that trading conditions "have substantially deteriorated" in the third quarter, affecting spreads on MBS and loans.

These spreads have "sharply widened, causing the company to incur losses (net of hedges) of approximately $1.5 billion for the quarter to date," according to a company 10-Q report filed Aug. 11.

"The firm's current expectations are for the global and U.S. economic environments to continue to be weak, for capital markets to remain under stress and for a continued decline in U.S. housing prices," JPMorgan Chase said.

JPMorgan Chase can be found on the Internet at http://www.jpmorganchase.com/.

 

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