Embattled U.S. lender JPMorgan Chase & Co. (JPM: Quote) will suspend stock buybacks, chief executive officer Jamie Dimon said Monday while speaking at the Deutsche Bank Securities Inc. Global Financial Services Investor Conference in New York.
However, Dimon said that said the suspension of the stock buyback program did not imply that the lender was suffering worse losses than already stated. He also that the company plans to maintain its dividend.
"I've been asked a lot of questions about capital distribution," Dimon said. "I made the mistake at the shareholder meeting, saying I hoped to continue dividends. No, we intend to maintain the dividend."
The move comes 10 days after the New York-based company disclosed a $2 billion trading loss in its chief investment office.
Dimon said at the Deutsche Bank conference Monday that the company decided to suspend share buybacks in order to meet global regulatory requirements on higher capital levels, and not because of the size of trading losses.
In March, JPMorgan announced a new $15 billion equity repurchase program and increased its quarterly dividend to $0.30 per share after the Federal Reserve cleared the company's capital distributions proposal.
JPMorgan shares closed Monday's regular trading session at $32.51, down 98 cents or 2.93%, but gained 0.49% in after hours trading.
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by RTT Staff Writer
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