8-KRegulation FDExhibits & Filings

JPMORGAN CHASE & CO 8-K Report, Regulation FD Disclosure (Jun 23, 2016)

Filed June 23, 2016For Securities:JPMJPM-PCJPM-PDJPM-PKJPM-PLJPM-PMJPM-PJAMJBVYLD

Summary

JPMorgan Chase & Co. (JPM) filed an 8-K on June 22, 2016, to disclose the results of its company-run 2016 Dodd-Frank Act Stress Test (DFAST). This disclosure provides investors with insight into the firm's resilience under hypothetical severely adverse economic scenarios as defined by the Federal Reserve Board. The report indicates that the company-run stress test results reflect the assumptions and shocks provided by the Federal Reserve, offering a forward-looking view of the bank's capital adequacy. It is crucial for investors to understand that these results are the firm's internal assessment and should not be interpreted as the Federal Reserve's final judgment on JPM's capital plan or proposed capital actions. The actual regulatory decision on the firm's capital plan, including any potential objections to capital actions, will be publicly announced by the Federal Reserve on June 29, 2016, as part of the Comprehensive Capital Analysis and Review (CCAR). Investors should await the official CCAR results for a definitive assessment of JPM's capital strength and dividend/buyback plans.

Key Highlights

  • 1JPMorgan Chase released its company-run 2016 Dodd-Frank Act Stress Test (DFAST) results on June 22, 2016.
  • 2The DFAST results are based on the Federal Reserve Board's 'Supervisory Severely Adverse' economic scenario and market shock assumptions.
  • 3The disclosure provides a hypothetical look at the firm's capital adequacy under stressed conditions.
  • 4This filing is furnished under Regulation FD and the information is not deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934.
  • 5Investors are cautioned not to infer the Federal Reserve's judgment on JPM's capital plan or proposed actions from these company-run results.
  • 6The Federal Reserve will publicly disclose the official CCAR results, including capital plan approvals, on June 29, 2016.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose the results of JPMorgan Chase's own internal 2016 Dodd-Frank Act Stress Test (DFAST) to the public. This provides investors with an early look at how the firm's capital would hold up under hypothetical severely adverse economic conditions.

Investors should view these results as JPMorgan Chase's internal assessment of its capital resilience based on Federal Reserve-provided hypothetical scenarios. Crucially, these are not the final regulatory decisions. The Federal Reserve's official assessment of JPM's capital plan and proposed capital actions (like dividends and buybacks) will be released on June 29, 2016, as part of the CCAR results.

The DFAST results disclosed here are JPMorgan Chase's company-run test outcomes based on Federal Reserve's severe scenario assumptions. The upcoming CCAR results (on June 29, 2016) will be the Federal Reserve's official evaluation of JPM's capital adequacy, including its ability to withstand these stresses and approval for proposed capital actions, considering both quantitative and qualitative factors.

Investors will know the Federal Reserve's determination regarding JPMorgan Chase's capital plan and proposed capital actions on June 29, 2016, when the results of the 2016 Comprehensive Capital Analysis and Review (CCAR) are publicly disclosed by the Federal Reserve Board.