{"id":219253,"date":"2018-01-12T16:30:19","date_gmt":"2018-01-12T14:30:19","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=219253"},"modified":"2018-01-12T16:30:19","modified_gmt":"2018-01-12T14:30:19","slug":"jpmorgans-143-million-margin-loan-loss-tied-to-steinhoff","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/219253\/jpmorgans-143-million-margin-loan-loss-tied-to-steinhoff\/","title":{"rendered":"JPMorgan&#8217;s $143 million margin loan loss tied to Steinhoff"},"content":{"rendered":"<div class=\"article-content\">\n<p>JPMorgan Chase &amp; Co\u2019s equities business took a big hit from Steinhoff International Holdings NV last quarter.<\/p>\n<p>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.<\/p>\n<p>Chief financial officer Marianne Lake confirmed on a conference call with reporters that the writedown was tied to Steinhoff, the South African retailer engulfed in an accounting scandal.<\/p>\n<p>Steinhoff announced on Dec. 5 that it had uncovered accounting irregularities.<\/p>\n<p>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\u2019s seeking \u201csignificant near-term liquidity\u201d for some of its business units.<\/p>\n<p>Other banks will probably also have large losses tied to Steinhoff, though rivals may report the declining value of loans through higher credit provisions rather than a markdown like JPMorgan did, Lake said.<\/p>\n<p>The loan loss turned a potential 12% jump in fourth-quarter equities revenue from a year earlier to little changed.<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/business\/217877\/steinhoff-chief-financial-officer-steps-down\/\" target=\"_blank\" rel=\"noopener\">Steinhoff chief financial officer steps down<\/a><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>JPMorgan Chase &#038; Co\u2019s equities business took a big hit from Steinhoff International Holdings NV last quarter.<\/p>\n","protected":false},"author":59,"featured_media":219255,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[5348,11059],"class_list":["post-219253","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-jpmorgan-chase-co","tag-steinhoff"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/219253","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=219253"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/219253\/revisions"}],"predecessor-version":[{"id":219257,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/219253\/revisions\/219257"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/219255"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=219253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=219253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=219253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}