US stocks slumped overnight, pressuring the Dow Jones Industrial Average near to a four-month low, as political concerns in Greece continued to cloud the outlook for the global economy.
A group of hedge funds, including those run by Odey Asset Management, had a combined $1bn invested in JP Morgan Chase which suffered a near 10% drop in its share price on Friday.
Shares in JPMorgan Chase fell almost 7% in after hours trading on Wall Street on Thursday after it revealed a surprise $2bn derivatives trading loss by a London trader.
J.P. Morgan Chase, the US banking giant based in New York, saw profits fall 3.1% overall in Q1, but still beat analysts' forecasts.
Odey Asset Management's Crispin Odey is favouring US financials and tech stocks across his portfolios, with mega-cap investment banks among his top picks.
The Federal Reserve plans to stress test six major US banks against market shocks, as part of an annual review of bank health.
Wall Street's biggest banks had their worst quarter of results since 2008's financial crisis, with trading revenue down 35% on last year.
The US is planning to sue more than a dozen major banks for misrepresenting the quality of mortgages they sold during the housing bubble, the New York Times reports.
Analysts at JPMorgan Chase have downgraded LinkedIn from a'buy' to 'neutral' recommendation, amid concerns the stock is overheated.
J.P. Morgan Chase & Co. has reported quarterly profit rose 67%, but revenue at the US bank remains under pressure amid sluggish loan growth and mounting mortgage costs.