May 10, 2012 at 5:17 PM ET
Editor's note: This post has been undated with revised numbers and quotes from the CEO here.
CNBC reports that JPMorgan Chase has significant mark-to-market losses. Legal losses of $4.2 billion are “reasonably possible.” Mary Thompson and Maria Bartiromo discuss the story.
Mark-to-market losses are when a company's asset, usually an investment, loses value and must be restated on their balance sheet. The company has scheduled a 5 p.m. Eastern conference call to discuss their situation.
Stock index futures slid after the market's close on Thursday. JPMorgan's stock lost 5 percent to $38.67 in after-hours trading.
S&P 500 futures fell 9.2 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration of the contract. Nasdaq 100 futures fell 14.75 points.
Reuters contributed to this report.