JP Morgan Faces Loss

Now Global Crossing is operating under bankruptcy protection and the bank are thought to have exposure of around $95m and have little prospect of recovery.

JP Morgan have now come under criticism for allegedly putting a desire to break into the sector before a proper credit analysis of the business proposition.

Before shareholders cry foul, however, the exposure to Global Crossing is small potatoes for JP Morgan Chase and the bank is believed to have made almost as much in arrangement and other fees out of the company as the debt they are likely to have to write off.