JPMorgan Chase takes a hit on loans

Wall Street firm JPMorgan Chase is to write down at least $1.5 billion (£781.1 million) this quarter as credit and mortgage markets continue to erode its portfolio.

The bank said trading conditions "have substantially deteriorated" since July compared with the second quarter, and that it had been hit by "sharply widened" spreads on mortgage-backed securities and loans.

JPMorgan held $16.3 billion of leveraged loans and unfunded commitments as of 30 June. It also had $11.6 billion of commercial mortgage-backed securities, which could be "adversely affected" by a collapse in the housing market.