JPMorgan Suspends Buybacks

JPMorgan Chase & Co (NYSE:JPM) Chief Executive Officer Jamie Dimon said on Monday that the bank had suspended repurchases of its stock, but is maintaining its dividend, while working down losing trades in credit derivatives.

Shares of JPMorgan were down 1 percent at $33.13 in morning trading after Dimon started speaking at the Deutsche Bank Securities Global Financial Services Investor Conference in New York.

The bank announced on May 10 that it had lost at least $2 billion mishandling a portfolio of credit derivatives.

JPMorgan won permission from the U.S. Federal Reserve in March to spend as much as $12 billion buying back stock this year and another $3 billion early next year.

Dimon said the bank was holding back on buybacks to make sure it stays on its planned "glide path" to reach minimum capital requirements being imposed under so-called Basel 3 standards.

In April, Dimon had indicated in a letter in the company's annual report that buybacks at prices for less than about $45 a share were good for stockholders.

The stock has lost nearly $30 billion of market value since the loss was announced.