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JP Morgan shares fall 2% following capital plans and London Whale report
JPMorgan Chase (JPM $49.80 -1.20) announced capital plan. The Firm is authorized to repurchase an additional $6 billion of common equity between April 1, 2013 and March 31, 2014. The Board of Directors intends to declare the first quarter common stock dividend of $0.30 per share. The Board of Directors intends to increase the Firm's quarterly common stock dividend to $0.38 per share, effective second quarter of 2013. The Federal Reserve Board informed the Firm today that it does not object to the Firm's proposed 2013 capital distribution plan. The Federal Reserve Board also asked that the Firm submit an additional capital plan by the end of the third quarter addressing the weaknesses identified in the Firm's capital planning processes. Following their review, the Federal Reserve Board may require the Firm to modify its capital distributions. Jamie Dimon, Chairman and CEO of JPMorgan Chase said: "We are pleased to announce that our Board intends to increase our dividend in the second quarter, returning it to its highest level, and to continue our equity buyback program. We anticipate reaching a Basel III Tier I common ratio of 9.5% by the end of this year after these capital actions and with the ongoing growth in our businesses." Mr. Dimon added: "JPMorgan Chase is fully committed to meeting all of the Fed's requirements."
JPMorgan Chase (JPM $49.80 -1.20) announced capital plan. The Firm is authorized to repurchase an additional $6 billion of common equity between