JPMorgan $143m loan loss is said to be tied to Steinhoff
INTERNATIONAL - JPMorgan Chase & Co.’s equities business took a big hit from Steinhoff International Holdings NV last quarter.
The bank recognized a $143 million mark-to-market loss on a margin loan to a single customer in its stock-trading unit, the New York-based firm said Friday in a statement. The bank didn’t identify the client or say what caused the loss. The writedown was tied to Steinhoff, the South African retailer engulfed in an accounting scandal, according to a person briefed on the matter.
Steinhoff announced on Dec. 5 that it had uncovered accounting irregularities. The disclosure prompted a plunge in the share price of the Frankfurt- and Johannesburg-listed company, along with the resignation of Chief Executive Officer Markus Jooste and Chairman Christo Wiese. Steinhoff last week said it’s seeking “significant near-term liquidity” for some of its business units.
The loan loss turned a potential 12 percent jump in fourth-quarter equities revenue from a year earlier to little changed.