By Emily Glazer
J.P. Morgan Chase & Co. notched $250 million to $300 million
in gains after the Swiss central bank triggered turmoil in the
markets in mid-January, a person familiar with the gains said.
This comes as other banks, brokers and individual investors
suffered hundreds of millions in losses when the Swiss currency
jumped following the Swiss National Bank's decision to stop reining
in the value of the franc against the euro. The currency grew by
nearly 30% against the euro and 18% against the dollar and
unleashed new volatility in credit and currency markets around the
world.
Citigroup Inc. suffered around $150 million in losses on the
franc's appreciation, people familiar with the matter have said.
"We did see an unusually large move in the value of the franc in a
very short period of time," the bank's Chief Financial Officer John
Gerspach said on an earnings call earlier this month.
The Wall Street Journal reported earlier in January that
Deutsche Bank AG would lose around $150 million and Barclays would
lose tens of millions due to the franc's appreciation.
J.P. Morgan filled client orders at a certain rate, allowing
them to quickly assess their position and continue trading when
liquidity dried up in the market, this person said. The bank told
clients it would fill orders at 1.02 francs per euro while the
Swiss currency grew from 1.20 francs per euro to nearly .85 on Jan.
15, the person said. It is unclear how long the bank offered this
rate to clients.
Bloomberg earlier reported the J.P. Morgan gains and details
around the bank's ability to fill client orders.
Write to Emily Glazer at emily.glazer@wsj.com
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