JPMorgan Cuts Dividend 87 Percent to 5 Cents a Share
Originally posted on Bloomberg
JPMorgan Chase & Co., the second- largest U.S. bank, slashed its dividend by 87 percent to 5 cents and said it plans to maintain that level “for the time being.” The bank and its predecessors haven’t cut the dividend since 1990.
The move aims to protect the bank even if the economy deteriorates “significantly,” Chief Executive Officer Jamie Dimon said in a statement today. It isn’t “directly related” to the $25 billion that JPMorgan received under the government’s Troubled Asset Relief Program, or TARP, Dimon said.
“We were not asked by anyone to do this,” Dimon said on a conference call. The reduction will allow the bank to repay the government funds “as soon as is prudent,” the statement said.
JPMorgan is among banks that came under pressure from Congress after accepting TARP money to reduce dividends and curb bonuses. Bank of America Corp. cut its payout to 1 cent on Jan. 16, while Citigroup Inc. followed Jan. 20. Those two banks received a combined $90 billion.
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