JPMorgan to announce $5bn "whale" loss JPMorgan Chase is expected to announce losses of about $5bn related to trades by the so-called London whale at its second-quarter earnings presentation in two weeks. People familiar with the matter say the latest estimates are twice the initial forecast but far short of some predictions. The US bank has moved to shift the bulk of its position in the CDX NA IG 9, an index that tracks a basket of credit derivatives on US corporate bonds, say those familiar with the unwinding of the trade. That is one large part of the multifaceted trade that went sour this year. JPMorgan is expected to warn there could be additional smaller losses this year as it completes the unwind. Shares in JPMorgan fell as much as 5 per cent in pre-market trading on reports that losses from the bank's chief investment office could reach $9bn. Jamie Dimon, the chief executive, announced losses of $2bn from trading by Bruno Iksil, a UK-based trader known as the "London whale" among hedge funds for his big position in a credit derivatives index. Mr Dimon said at the time the losses "could get worse" and people familiar with daily estimates say they have. However, he has also said the quarter will still be "solidly profitable." Mr Dimon had said the bank might hold on to the position for an extended period so as not to aggravate losses in a fire sale. But he appears to have prioritised getting a firm grip on the position by the time JPMorgan reports second-quarter earnings. JPMorgan is holding a rare face-to-face earnings meeting for analysts on the day and will offer presentations from Mr Dimon and Michael Cavanagh, the executive investigating the trades and how they "morphed," in Mr Dimon's words, into severe losses. The botched trades have caused a $20bn decline in JPMorgan's market capitalisation, from $155bn before Mr Dimon announced "egregious" losses to $135bn yesterday. Shares in the bank were down 3.5 per cent to $35.48 in morning trading after the New York Times reported the losses could reach $9bn. Losses of $9bn would wipe out JPMorgan's earnings for the first half of the year. Analysts are expecting net income of $3.6bn in the second quarter, down from $5.4bn in the first quarter. Keith Horowitz, an analyst at Citigroup, cut earnings estimates across Wall Street yesterday and estimated a $2.5bn-$3.5bn loss from the CIO's trades. "While we see the lapse in controls at the CIO as disappointing, we see this issue as contained, and view this event as presenting a unique opportunity to purchase one of the best franchises in the group at attractive prices," Mr Horowitz wrote in a research note. JPMorgan declined to comment on the loss estimates.