JPMorgan Chase Boosts Buybacks After Dimon Calls Stock Expensive

JPMorgan Chase plans to increase share buybacks amid excess cash concerns, despite CEO Dimon’s previous caution on stock prices

JPMorgan Chase Boosts Buybacks After Dimon Calls Stock Expensive
JPMorgan Chase Boosts Buybacks After Dimon Calls Stock Expensive

New York: CEO Jamie Dimon was recently at the “Choose France Summit” in Paris, where he aimed to attract foreign investors. Meanwhile, JPMorgan Chase is planning to ramp up share buybacks. They want to manage a hefty pile of excess cash, which is around $35 billion.

After a record year, the bank is dealing with what they call a “high-class problem.” CFO Jeremy Barnum mentioned they have more cash than needed for regulatory requirements. He said they want to avoid letting that excess grow.

Investors are curious about how JPMorgan will handle this cash. The bank had been stockpiling earnings for stricter regulations, but now it seems the upcoming Trump administration might ease those rules.

Back in May, Dimon was hesitant about buying back stock when it was trading near $205.88. He made it clear that buying back shares at high prices wasn’t a smart move. He believes it’s a mistake to buy back stock when it’s valued too high.

Since then, the stock price has gone up by 22%. Dimon and others have been warning about a potential recession, which hasn’t hit yet, but they’re still preparing for it. Barnum noted there’s a “tension” between economic risks and high asset prices.

If a downturn does happen, JPMorgan could use that excess cash for loans. Analyst Charles Peabody thinks the bank will be careful with its capital. He believes the best time to gain market share is after a recession when competitors are struggling.

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