By Tatiana Bautzer NEW YORK, April 14 (Reuters) – As the largest banks expect to release billions in capital with regulatory reform, many are already making plans about how to spend them. In a letter to shareholders, J.P. Morgan CEO Jamie Dimon estimated the bank has around $40 billion in excess capital, considering the latest […]
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Banks press for more capital relief, make plans to use excess capital
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By Tatiana Bautzer
NEW YORK, April 14 (Reuters) – As the largest banks expect to release billions in capital with regulatory reform, many are already making plans about how to spend them.
In a letter to shareholders, J.P. Morgan CEO Jamie Dimon estimated the bank has around $40 billion in excess capital, considering the latest proposals to implement the Basel III endgame. But Dimon also mentioned in the letter that some reduction in capital required since the 2023 proposals was welcome, “there are still some aspects that are frankly nonsensical. The GSIB surcharge is still broken,” he said in the letter, referring to Global Systemically Important Banks.
Staff of the Federal Reserve System met with representatives of Morgan Stanley to discuss the notice of proposed rulemaking to enhance the transparency and public accountability of its annual stress test, as well as the board’s requests for comments on the scenarios and models for the upcoming 2026 stress tests.
Representatives of Morgan Stanley discussed their views on the stress test proposals, including the proposed pre-provision net revenue models for the 2026 stress test.
(Reporting by Tatiana Bautzer)