Reuters: Global Markets: JPMorgan looks to trim buybacks over $45/share-CEO

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JPMorgan looks to trim buybacks over $45/share-CEO Apr 4th 2012, 22:53 Tweet Share this Email Print Related News CFTC orders JPMorgan to pay $20 million in Lehman case 5:43pm EDT S&P within 10 percent of record high; Apple up on dividend plan Mon, Mar 19 2012 JPMorgan CEO warns staff on schadenfreude after Goldman resignation Thu, Mar 15 2012 Fed stress tests an investor payday for some Wed, Mar 14 2012 Fed gives mostly high marks in bank stress tests Wed, Mar 14 2012 Analysis & Opinion All in the price in China? SecondMarket's unnecessary Facebook Fund Related Topics Hot Stocks » Asian Markets » A sign is seen outside the JPMorgan office in Los Angeles, California, October 12, 2010. Credit: Reuters/Lucy Nicholson By David Henry Wed Apr 4, 2012 6:53pm EDT (Reuters) - JPMorgan Chase & Co (JPM.N) Chief Executive Jamie Dimon said on Wednesday that the company is inclined to restrict its stock buybacks when its shares are trading above $45. At $45, buybacks still increase earnings per share but are only a break even proposition to stockholders in terms of tangible book value, Dimon wrote in an annual letter to shareholders. Above $45, he said, the company is likely to buy back only as much stock as necessary to offset shares issued to pay employees. JPMorgan shares closed on Wednesday at $44.41, down 2.2 percent. "Our appetite for buying back stock is not as great (of course) at higher prices," Dimon wrote. "Currently, above $45 a share, we plan to continue to buy back the amount of stock that we issue every year for employee compensation - we think this is just good discipline." Dimon lamented that regulators did not allow the bank to buy back more stock when the shares were cheaper. JPMorgan shares traded below $40 the last five months of 2011. Last month, JPMorgan received permission to buy back more stock when the Federal Reserve tested the financial strength of major banks to withstand severe economic stress. Dimon said he does not usually comment on the company's stock price. He said he made an exception in the letter because the company has bought back a lot of shares "and there are many concerns about investing in bank stocks." JPMorgan spent $9 billion buying back its own stock in 2011. (Reporting by David Henry in New York; Editing by Tim Dobbyn) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints Comments (0) This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

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