JPMORGAN CHASE & CO (JPM) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that JPMORGAN CHASE & CO surfaced in its latest filing.

• JPMorgan Chase & Co. resolution plan is reviewed by the Federal Reserve and the FDIC; if both regulators deem the plan deficient, they may impose stricter capital, leverage, or liquidity requirements, or restrict growth, activities, or operations, or require restructuring, reorganization, or divestiture of assets or businesses.
• Federal Reserve rules require JPMorgan Chase & Co. to maintain minimum levels of unsecured external long-term debt (eligible LTD) to recapitalize operating subsidiaries in a resolution.
• The FDIC has indicated a single point of entry recapitalization model as expected strategy under Title II, but has not formally adopted any specific resolution strategy.
• JPMorgan Chase & Co. is a holding company that holds stock of JPMorgan Chase Bank, N.A. and JPMorgan Chase Holdings LLC (the IHC); the Parent Company must contribute substantially all net proceeds from securities issuances to the IHC.
• JPMorgan Chase Bank, N.A. is subject to regulatory restrictions on dividends it can pay to the Parent Company; the IHC is prohibited from paying dividends or extending credit to the Parent Company if certain capital or liquidity thresholds are breached or limits are imposed by the Parent Company's management or Board of Directors.
• Increases in estimated stress losses under CCAR can increase JPMorganChase's SCB, and using regulatory capital buffers could subject JPMorganChase to restrictions on capital distributions and discretionary bonus payments to executive officers.