S&P 500
7,615.20
-0.09%
Dow Jones
51,320.00
-0.10%
Nasdaq 100
30,651.40
-0.21%
Russell 2000
2,928.58
-0.15%
FTSE 100
10,383.00
-0.05%
Nikkei 225
68,424.20
+1.37%

Banking, finance, and taxes

JPMorgan to Suspend $15 Billion Share Buyback Program

Photo of Paul Ausick
By Paul Ausick Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
Jamie Dimon, CEO of JPMorgan Chase & Co. (NYSE: JPM) told an investor’s conference this morning that the bank would suspend its share buyback program as the company pays down its losses on its credit derivatives trading. The bank announced a $15 billion share repurchase plan in March, following its successful performance on the latest round of bank stress tests.

Dimon also said that the bank would continue to pay dividends, but those payments could also be in jeopardy if the Federal Reserve decides that the derivatives losses threaten the stability of the banking system. Given a choice between two bad alternatives, Dimon and JPM have chosen to retain dividend payments in an effort to keep shareholders at least reasonably happy. By suspending its share buybacks, the bank is hoping to cut off any demand to kill its dividend payments.

The SEC, the FBI, and the Commodities Futures Trading Commission (CFTC) have all launched investigations into JPM’s recently announced trading loss of $2 billion and counting.

As the market continues to slide, JPM’s losses from the trades continue to mount and could top $5 billion. The catch is that no one really knows the extent of the bank’s exposure, probably including even the bank itself.

Shares are down less than -1% at $33.18 in a 52-week range of $27.85-$46.49.

Paul Ausick

DISCLOSURE:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options  Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.
Follow 24/7 Wall St. on Google
Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

Continue Reading

Hints of Big Dividend Cuts for Major Banks Overlooked in FOMC Minutes
Jon C. Ogg |

Hints of Big Dividend Cuts for Major Banks Overlooked in FOMC Minutes

When the economy went into panic mode and the insta-recession was becoming unavoidable, many major companies and small companies alike…

Jon C. Ogg |

J.P. Morgan Versus Wells Fargo on Share Buybacks

This has been an interesting year when it comes to health of the banks. Wells Fargo & Co. (NYSE: WFC)…

Jon C. Ogg |

Why I am Disappointed in J.P.Morgan’s Dividend Hike & Buyback Plan (JPM, BAC, WFC)

J.P. Morgan Chase & Co. (NYSE: JPM) was truly a shoe-in as far as whether or not the bank was…

Federal Reserve Restricts Big Bank Buybacks and Dividends, Wants More Testing
Paul Ausick |

Federal Reserve Restricts Big Bank Buybacks and Dividends, Wants More Testing

The Federal Reserve Bank on Thursday released the results of its required stress tests on the nation's biggest banks.

Recession Turn: Many More Companies Now At-Risk of Halting Dividends and Buybacks to Fight the Coronavirus
Jon C. Ogg |

Recession Turn: Many More Companies Now At-Risk of Halting Dividends and Buybacks to Fight the Coronavirus

Most investors who purchase dividend stocks expect those companies to pay those dividends through good times and bad times. When…

Jon C. Ogg |

Jamie Dimon Readies J.P. Morgan Investors for Much Larger Dividends Ahead

Many investors will cheer the dividend and shareholder treatment comments from J.P. Morgan's investors day presentation by Jamie Dimon.

Why JPMorgan Shares Could Catch Up and Outperform the Dow and S&P
Jon C. Ogg |

Why JPMorgan Shares Could Catch Up and Outperform the Dow and S&P

JPMorgan has lagged the overall market performance so far in 2017. That is about to change, if one Merrill Lynch…

Jon C. Ogg |

A Call For Jamie Dimon To Resign

J.P. Morgan Chase & Co. (NYSE: JPM) has done some severe damage to its image as the best risk manager…

Are Bank Stock Investors Ready for Lower Dividends and Lower Book Values?
Jon C. Ogg |

Are Bank Stock Investors Ready for Lower Dividends and Lower Book Values?

Everything was looking perfect for the banks at the start of 2020. Interest rates were expected to remain stable for…

Top Gaining Stocks

Hewlett Packard Enterprise
HPE • Vol: 153,197,465
Enphase Energy
ENPH • Vol: 8,360,053
Corning
GLW • Vol: 18,152,646
Alexandria Real Estate Equities
ARE • Vol: 4,337,015
Aptiv
APTV • Vol: 6,761,325

Top Losing Stocks

Trade Desk
TTD • Vol: 21,905,513
Intuit
INTU • Vol: 7,383,018
Coterra Energy
CTRA • Vol: 73,319,495
Cboe Global Markets
CBOE • Vol: 5,000,011
HP
HPQ • Vol: 29,259,826