JPMorgan Chase, America's biggest bank by assets, traded at $353 Thursday as a regulatory fight put $13 billion of potential capital relief on the line. Reuters, citing the bank's public June comment letter, reported that changing the treatment of short-term wholesale funding would shrink JPMorgan's expected benefit from the Federal Reserve's broader capital overhaul. The Federal Reserve proposal would change how wholesale funding is measured and weighted when calculating surcharges for global systemically important banks. JPMorgan says the formula hands an advantage to trading-heavy rivals, while supporters argue it measures risk more accurately. The overall plan still cuts capital requirements, but the real showdown is over which banks walk away with the biggest prize. JPMorgan generated second-quarter net income of $21.2 billion, making the disputed $13 billion equal to roughly 61% of one quarter's profit. The $353 share price stands 12.25% above the $314.49 GF Value estimate, indicating investors are already paying a premium.
JPMorgan Chase & CoFed proposal on wholesale funding could reduce JPMorgan's $13B capital relief benefit.
