NEW YORK, March 14 JPMorgan Chase & Co's
stock buyback plan that was conditionally approved by the
Federal Reserve on Thursday calls for spending half as much as
was allowed before the bank lost $6.2 billion in the "London
Whale" derivatives trades.
The bank said in a statement that the Fed had approved its
plan to buy back $6 billion of stock over the next 12 months,
subject to addressing weaknesses the Fed found in the firm's
capital planning process.
"JPMorgan Chase is fully committed to meeting all of the
Fed's requirements," CEO Jamie Dimon said in an announcement
from the company.
The bank also said it intends to raise its quarterly
dividend in the second quarter to 38 cents a share from 30
The approved rate of stock purchases of $1.5 billion per
quarter is half that approved last year before the loss on
derivatives contracts made by trader Bruno Iksil, who became
known in the markets as the "London Whale" for the size of
positions he took while working in London.
On Thursday bank executives were strongly criticized over
the "London Whale" loss in a report by the U.S. Senate permanent
subcommittee on investigations.
Dimon had said earlier this year that the bank had proposed
to regulators spending less on buybacks in order to build up
capital to meet pending new requirements from regulators.