Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--J.P. Morgan Chase & Co. (JPM), the target of a several rumors which are weighing on its stock price, categorically denied the speculation.
The rumors making the rounds aren't new: one, which has come up several times this year, involves the bank losing big money tied to gold trading. This time, the rumor was that J.P. Morgan had lost $17 billion or more. Others heard talk of a press conference this morning. All the talk is unfounded, the bank said.
"The rumors are false and irresponsible," a J.P. Morgan spokesman said.
The news may have been imported this morning from Europe by short-sellers.
J.P. Morgan shares recently traded down 3.7% at $21.24, in a market that is generally lower.
(MORE) DOW JONES NEWS 11-07-02
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=DJ JP Morgan/Rumors -3: Stock Is Vulnerable To Speculation
J.P. Morgan is especially vulnerable to speculation these days given its ongoing financial troubles. The bank has been grappling with rising credit losses and weak capital-market revenue amid the prolonged economic and market slump.
The financial-services giant posted a 91% drop in third-quarter income last month, as a spike in soured telecom and cable loans, along with feeble trading revenues, obliterated profits. It also said it would cut about 2,000 jobs to reduce expenses.
In other news, U.S. District Judge Jed S. Rakoff in Manhattan denied the bank's request for a summary judgment in its dispute with insurers over who should be on the hook for roughly $1 billion in surety bonds tied to Enron Corp. (ENRNQ). A jury will now hear the case, the judge said. J.P. Morgan, which hasn't set aside money to cover any potential losses tied to the case, said it expects to prevail.
-By Tara Siegel Bernard; Dow Jones Newswires; 201.938.5288; tara.siegel@dowjones.com
(END) DOW JONES NEWS 11-07-02
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