JP Morgan's buyback program may be stopped due to fines recalculations
The current repurchase program projected to cost USD6 billion undertaken by JP Morgan Chase & Co may be halted because of the increase in payable fines and penalties charged in the second half of 2013. This was reported by Portales Partners LLC analyst Charles Peabody through a research note today.
Peabody had cut his projected earnings figures by 12.5% to a mere USD4.90. The reason for such cut back is the payment of fines as well as what he termed as 'material control and procedure violations that the bank must remediate.' The note was sent to the hedge fund firms clients.
The company agreed last week to pay nearly USD1.3 billion to resolve investigations into trading losses incurred back in 2012. The settlement was for claims the bank had unfairly charged customers for credit monitoring instruments.
For its part, JPMorgan Chase & Co spokesperson Brian Marchiony declined to make any comment on the matter.