JPMorgan Chase Highlights Potential Discrepancies in Federal Reserve's Stress Test Results
Portfolio Pulse from Benzinga Newsdesk
JPMorgan Chase & Co. has reviewed the Federal Reserve's 2024 stress test results and identified potential discrepancies in the projections for Other Comprehensive Income (OCI). The firm believes the benefit in OCI may be overstated, which could result in modestly higher stress losses than disclosed. As of March 31, 2024, JPMorgan Chase reported a CET1 capital ratio of 15.0%, significantly above the regulatory requirement of 11.9%.
June 27, 2024 | 7:08 am
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JPMorgan Chase has identified potential discrepancies in the Federal Reserve's 2024 stress test results, particularly in the projections for Other Comprehensive Income (OCI). The firm believes the OCI benefit may be overstated, which could lead to modestly higher stress losses than disclosed. Despite this, JPMorgan Chase maintains a strong CET1 capital ratio of 15.0%, well above the regulatory requirement of 11.9%.
The news highlights a potential issue in the Federal Reserve's stress test results, which could lead to modestly higher stress losses for JPMorgan Chase. However, the firm's strong CET1 capital ratio of 15.0% suggests it is well-capitalized to handle such discrepancies. This mixed news is likely to have a neutral short-term impact on JPM's stock price.
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