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JPMorgan Chase & Co. (NYSE:JPM) bad treading bet may reach as much as $9 billion. According to the New York Times, the bank prepared an internal report in April showing that its anticipated losses in worst-case scenario will be between $8 billion to $9 billion.

Last May Jamie Dimon, CEO of JP Morgan Chase revealed that the bank lost $2 billion from trading bets on credit derivatives and anticipated that it will double during the following quarters.

Some analysts believe that the bank’s losses will not reach  as much as $9 billion since the company is trying its best to exit from its bad-trading positions. JP Morgan Chase reported that half of its bad trading positions are already clear and expects a total exit early next year. Their highest expectation for the bank’s losses is between $6 billion to $7 billion.

During the Financial Services Committee hearing held by the House of Representatives last week, Dimon testified that JP Morgan Chase London Unit “embarked on a complex strategy,” although the intention was to minimize risks, the result put the bank in a great jeopardy. Dimon described that the trading as “stupid” move however, he assured the members of the Committee that the failure is an “isolated incident.” Dimon also apologized to the investors and the lawmakers. He also expressed assurance that JP Morgan Chase is still financially strong and it has enough funds to use in the event of economic difficulties.

JP Morgan Chase will announce some part of its total losses during its second quarter earnings report on July 13. The bank expressed its confidence that it will report a profitable quarter despite its trading failures. During the first quarter, the bank profited $5.4 billion.

The Federal Reserve is currently investigating the cause of the bank’s losses. Since May, the bank lost $23 billion in market value.

We doubt the number will be this high. A few weeks ago we discussed the total amount JP Morgancould lose based on the CDS shown below. The trade is very complex but we doubt the number is that high based on the bloomberg grab shown below.