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In the latest estimate of its ever-increasing losses, JPMorgan Chase & Co. (NYSE:JPM) could now face a $4.2 billion second-quarter trading loss from its London-based chief investment office (CIO).

According to an International Strategy & Investment Group Inc.’s research note by Ed Najarian on Monday, he explained the pretax loss would help the second-quarter earnings to fall to $0.65 cents per share; this represents a 30 percent decline from a previous $0.93 estimate. Also affecting results, according to Najarian, is weaker-than-expected trading and investment banking revenue combined with mark-to-market private equity losses.

Just last week, we wrote that the writing was on the wall for JPMorgan’s losses to continue mounting as the CDS NA.IG.9, which JPM has a long position in, jumped. Boaz Weinstein is on the other side of the JPM trade. Now we can wrap our arms around a number and it’s not going to be one that really deserves a big hug.

Najarian also noted that the $4.2 billion loss will be “partially offset” by $2 billion from realized security gains, stronger mortgage-banking revenue and “debt-valuation adjustments.” When excluding trading losses, DVA and securities gains, he then estimated an operating earnings per share of $0.82 for the second quarter.

The analyst also slashed his 12-month price target for JPMorgan to $47 per share, down from from $52; he did keep a “Buy” rating on the stock.

On Monday, JPMorgan’s shares dropped 2.9 percent to $31; for the year-to-date, it has fallen 3.88 percent.

Hard to believe it was only a few week ago that JPMorgan’s Chief Executive Officer Jamie Dimon said the company lost about $2 billion from trades conducted by the CIO unit, which has quickly become known as the Wild Wild West for JPMorgan. The office has been accused of  managing the bank’s “idle cash” to gain profits while attempting to minimize risk.

Let’s just say it hasn’t met its objective.

Dimon has recently said losses may increase and it could take the remainder of the year to get rid of the less than desirable trades.

According to Bloomberg, Kristin Lemkau, a JPMorgan spokeswoman, declined to comment on Monday’s news.