Last year, Bank of America and Citigroup made similar disclosures, saying that estimates of their own future income differed from the Fed’s results.
JPMorgan Chase said late Wednesday that the Federal Reserve overestimated a key measure of income for the giant bank's recent stress test, and that its losses under the exam should actually be higher than what the regulator found.
The bank took the unusual step of issuing a press release minutes before midnight ET to disclose its response to the Fed's findings. The error means that JPMorgan might require more time to finalize its share repurchase plan, according to a person with knowledge of the situation.JPMorgan said that the Fed's projections for a measure called"other comprehensive income" — which represents revenues, expenses and losses that are excluded from net income —"appears to be too large.
"Should the Firm's analysis be correct, the resulting stress losses would be modestly higher than those disclosed by the Federal Reserve," the bank said.The error means that JPMorgan might require more time to finalize its share repurchase plan, according to a person with knowledge of the situation. Banks were expected to begin disclosing those plans on Friday after the market closes.
AI pioneer Illia Polosukhin, one of Google's ‘Transformer 8,' wants to democratize artificial intelligenceof the banks in the annual exercise cleared the hurdle of being able to withstand a severe hypothetical recession, while maintaining adequate capital levels and the ability to lend to consumers and corporations.Banks have complained that aspects of the annual exam are opaque and that it's difficult to understand how the Fed produces some of its results.
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