JPMorgan Chase & Co. may face even bigger losses on faulty bets in credit markets if Europe's debt crisis worsens, according to one of the hedge funds that took the other side of the trades, Bloomberg News reported yesterday. Michael Platt, co-founder and chief executive officer of BlueCrest Capital Management LLP, said that a credit fund run by his firm took a "small" position against JPMorgan after finding "anomalies" in the pricing of certain credit derivatives. BlueCrest would make money as the prices corrected, he said. JPMorgan, the biggest U.S. bank by assets, is seeking to stanch losses in its chief investment office as other hedge funds exploit its money-losing positions by trading in indexes tied to credit-default swaps. New York-based JPMorgan revealed a $2 billion loss on May 10, and CEO Jamie Dimon said that it could increase by as much as $1 billion this quarter.
