NEW YORK, July 13: JPMorgan Chase on Friday admitted that losses from botched derivatives trades had soared to $5.8 billion, nearly triple the cost originally predicted, while the bank warned of more red ink to come.

The losses which were linked to a British unit that included a trader dubbed “the London Whale” have cost $5.8 billion since the beginning of the year, according to chief financial officer Doug Braunstein.

The dodgy bets were originally forecast to set the firm back at least $2 billion.

The new figures were revealed as the bank reported profits for the second quarter that slid to $5 billion, a drop of nine per cent compared to the same period a year before.—AFP