Late on Wednesday, JPMorgan Chase revealed that the major bank’s losses during the last stress test should have been larger than what the regulator discovered because the Federal Reserve had overstated a crucial income metric.
Minutes before midnight ET, the bank made its reaction to the Fed’s conclusions public with an atypical press release.
The Fed’s estimates for “other comprehensive income,” a metric that includes gains, losses, and expenses not included in net income, “appears to be too large.”
JPMorgan was allotted $13 billion in OCI, more than any of the 31 lenders in this year’s test, under the Fed’s table of predicted revenue, income, and losses until 2026.
The expected losses on loans, investments, and trading in that scenario amounted to approximately $107 billion for the bank.
Source (CNBC)
