JPMorgan Chase & Co. (JPM), which today reported its first loss under Chief Executive Officer Jamie Dimon, said it has scaled back stock repurchases.
The bank repurchased $739.7 million of shares in the third quarter, down from $1.17 billion in the three months ended June 30 and $2.58 billion in the first quarter, according to a supplemental filing posted on the New York-based lender’s website today.
“We’re doing very little stock buyback right now,” Dimon said today on a conference call.
Charles Peabody, an analyst at Portales Partners LLC, said last month that the lender could be forced to halt its $6 billion repurchase program as fines and penalties on the bank grow. The third-quarter loss was fueled by a $7.2 billion charge tied to litigation and regulatory probes.
Bank executives were asked today about the possibility of litigation expenses affecting capital plans submitted to regulators or altering the pace of share repurchases.
“We don’t expect or believe that there should be any repercussions, but they’re ultimately up to the regulators’ decisions,” Chief Financial Officer Marianne Lake said.
JPMorgan suspended a $15 billion buyback plan last year to boost capital levels after a bet on credit derivatives in London that ultimately cost the firm more than $6.2 billion. Dimon in March won conditional Federal Reserve approval for $6 billion in buybacks. The Fed required the company to “address weaknesses” in its planning process.
The bank said in July, when making projections on leverage ratios, that its calculations assumed $6 billion to $8 billion in annual repurchases.
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