JPMorgan (JPM) CEO Jamie Dimon has been as vocal as anyone about his frustrations with the TARP and the pain of being a partner with the government.
And now it looks like his bank is finally set to extricate itself from Washington’s tentacles. The bank announced this evening plans to raise $5 billion and repay TARP by the end of June.
JPMorgan Chase & Co. announced today that it intends to raise $5 billion in common equity to satisfy a supervisory condition that the largest bank holding companies redeeming TARP (Troubled Asset Relief Program) preferred capital demonstrate access to the equity capital markets. While approval has not been granted, the company believes that upon completion of this capital raise it will have satisfied the criteria for fully redeeming the TARP preferred capital and expects to do so before the end of June.
JPMorgan Chase expects to have Tier One Capital of approximately $118 billion or 9.3% and Tier One Common of approximately $93 billion or 7.3% at the end of the second quarter, after the capital raise and the TARP preferred capital redemption. The company also expects to maintain its extremely strong capital ratios, even in the event of a more highly stressed environment over the next two years.