Colossal JP Morgan Chase loss stirs fears

JPMorgan Chase & Co's shock trading loss of at least $2 billion from a failed hedging strategy knocked financial stocks across the globe.

JPMorgan shares fell almost 7 percent after the closing bell and dragged other financial shares lower, with Citigroup down 3.6 percent and Bank of America down 2.6 percent. FBR Capital Markets analyst Paul Miller cut his target for the stock to $37 from $50 in response to the disclosures. The shares were at $40.74 before the news. Although the loss was specific to JPMorgan, it could have broader negative implications - raising the threat of further regulatory scrutiny.