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JPMorgan Chase & Co.’s (JPM) CEO Jamie Dimon sued regulators in October 2024 because he felt the powers that be were out of line with what he called overlapping or ill-conceived rules on capital requirements, card payments, and open banking, among other things. Well, what do you know? JPMorgan recently got a big regulatory win, highlights Keith Fitz-Gerald, editor of 5 With Fitz.

“It’s time to fight back,” he said bluntly at the time. Now, the Federal Reserve has reduced its Stress Capital Buffer (SCB) from 3.3% to 2.5%, lowering the bank’s required CET1 capital ratio to 11.5% from 12.3%.

JPMorgan Chase & Co. (JPM) Chart

Hang with me. This frees up about $18 billion in excess capital, giving JPMorgan more firepower for shareholder returns. Not surprisingly, JPMorgan wasted no time, announcing: 

• A $50 billion buyback – the largest by any US bank 
• A dividend hike to $1.50 per share, a 7% increase over last quarter 

JPMorgan is a masterclass in capital management and risk assessment. It’s also very bluntly an excellent case in why I prioritize strong executive leadership when it comes to selecting the stocks I want to own. 

Regional banks, which people constantly tell me are worth a look, pale in comparison when you’re playing in the big leagues. Buy the best, ignore the rest.

About the Author

Keith Fitz-Gerald has been called “somebody you should pay attention to” by #1 New York Times bestselling author and personal finance expert Suze Orman, “always insightful” by Constellation Research CEO Ray Wang, and a “market visionary” by Forbes. He has more than 3,000 prime-time appearances to his credit on the Fox Business Network, CNBC, Dubai One, BBC, and other networks around the world. 

Mr. Fitz-Gerald’s commentary and market analysis have been featured in such notable publications as the Wall Street Journal, The Times (of London), Wired, and more. He is the principal of the Fitz-Gerald Group which provides consulting services to professional wealth managers, and personally writes the popular, free 5 with Fitz read by tens of thousands of individual investors, financial advisors, and hedge fund pros around the world daily.

Mr. Fitz-Gerald believes anybody can be wildly successful in the financial markets when armed with the right knowledge, education, and tactics. 

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