JPMorgan gets nod to resume stock buys after Whale loss
November 9, 2012 12:35 AM EST
JPMorgan Chase & Co said U.S. regulators have approved a plan for the bank to use its capital to buy back as much as $3 billion of its stock in the first quarter of 2013.
The Federal Reserve told the bank on November 5 that it had approved the plan, JPMorgan said in a quarterly filing to the Securities and Exchange Commission on Thursday.
The losing derivatives positions were disclosed by JPMorgan on May 10, more than a month after reports surfaced in the credit markets that Bruno Iksil, a London-based trader for JPMorgan known as the London Whale, had made massive bets in credit markets.
The approved plan provides for JPMorgan to continue paying its current quarterly dividend on common stock, the filing said.
CEO Jamie Dimon told investors on May 21 the bank had suspended repurchases of its stock to rebuild its capital and meet higher requirements for financial safety.
Under restrictions imposed after the financial crisis, JPMorgan and other big banks cannot buy back stock or increase their dividends without approval from the Federal Reserve.
Dimon had said in early April that he could boost shareholder value by buying back stock for as much as $45 a share.
JPMorgan spent $9 billion in 2011 to buy back its shares.
In premarket trading on the New York Stock Exchange, JPMorgan shares were up 1.4 percent at $41.04.
(Reporting by David Henry in New York; Editing by Bernadette Baum)
Most Popular Slideshows
- Gennady Golovkin Next Fight Options: Canelo Alvarez, Miguel Cotto Or Julio Cesar Chavez Jr.
- NFL MNF: Pittsburgh Steelers 30, Houston Texans 23 [PHOTOS]
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Chilling: New ISIS Video Addresses Australia; Aussie Teen Delivers Message
- The Pirate Bay Blockade: Cost Of Blocking Websites Like TPB Is Ridiculously High
- Xiaomi Mi4 And MiPad Prices Likely Slashed, Thanks To Rivals Oppo, OnePlus And Meizu
- Virginia Woman Who Posted Naked Image Of Ex-BF’s New Partner 1st Person Charged Under Revenge Porn Law
- No Mercy: ISIS, Father Stones to Death Daughter for Alleged Adultery
- iOS 8 Jailbreak Release Date is Doomed as Team Evad3rs Opts Out, Pangu Hits Snag – Report
- Google Nexus 6 vs. iPhone 5S: 4 Important Things to Consider Before Switching to Android Lollipop