JPMorgan Chase: Federal Reserve stress test results are more optimistic than self-estimates
JPMorgan Chase stated that the Federal Reserve's stress test on the bank's ability to cope with an economic downturn is more optimistic on a key metric than the bank's own forecast. JPMorgan Chase said in a statement later on Wednesday that the Fed's estimate of the bank's other comprehensive income "appears overstated" compared to the bank's assessment, "If the company's analysis is correct, the resulting stress losses would be slightly higher than those disclosed by the Fed." This is another case of the Fed and banks reaching different conclusions. Last year, Bank of America and Citigroup pointed out differences in test results after the tests. Earlier that day, the Federal Reserve released stress test results for 31 major banks, showing that each bank participating in the test could meet minimum capital requirements during a theoretical economic recession. These results pave the way for increased shareholder dividends, even as the industry awaits a comprehensive proposal for new capital rules
According to the Zhitong Finance and Economics APP, JPMorgan Chase stated that the Federal Reserve's stress test on the bank's ability to cope with an economic recession is more optimistic on a key indicator than the bank's own forecast. JPMorgan Chase said in a statement later on Wednesday that the Federal Reserve's estimate of the bank's other comprehensive income "seems overstated" compared to the bank's assessment, and "if the company's analysis is correct, the resulting pressure loss will be slightly higher than the losses disclosed by the Federal Reserve."
This is another case where the Federal Reserve and banks have reached different conclusions. Last year, Bank of America and Citigroup pointed out differences in the test results after the tests.
Earlier that day, the Federal Reserve released the stress test results for 31 major banks, showing that each participating bank could meet the minimum capital requirements theoretically during an economic recession. These results pave the way for increased shareholder dividends, even as the industry awaits a comprehensive proposal for new capital rules