JPMorgan Chase cuts its stock repurchase program by nearly 90%, and CEO Jamie Dimon stated that he believes there are other ways to allocate capital.
JPMorgan Chase announced on Tuesday that it repurchased only 3.1 million shares in the third quarter, far lower than the 28 million shares repurchased during the same period last year.
Chief Executive Officer Jamie Dimon
On Tuesday, Damon stated during an analyst conference call, "The situation we are in now is different from what we have told you in the past. We currently believe that it is possible to reconfigure this capital over time under very favorable conditions. This is far better than buying stocks now and achieving a return on investment of 6% or whatever percentage that may be."
Damon did not specify where this capital would be invested, but JPMorgan Chase's equity capital in the commercial and investment banking departments increased by $2.8 billion in the third quarter, while the equity capital in other operating departments remained unchanged.
JPMorgan Chase has been looking for other ways to utilize some of its capital, including committing to investing $1.5 trillion over the next decade in industries that will help enhance the economic security of the United States. In September, the bank stated that it would allocate $1 billion in debt capital for manufacturing in Michigan.
Chief Financial Officer Jeremy Barnum stated during a analysts' teleconference on Tuesday: 'Considering the speed at which we are deploying capital internally, the current scale of excess capital, and the current environment, it is clearly reasonable to retain some reserves.'












