After the Federal Reserve disclosed JPMorgan Chase's stress test results 2024, the bank said in a statement that the Fed's projections for a particular asset - the 'Other Comprehensive Income (“OCI”) - was overestimated.
"Based on the Firm’s own assessment, the benefit in OCI appears to be too large", the bank says. The meaning of this is that its losses under the exam should actually be higher than the regulator's findings.
According to the Fed's projection (new table opens as pdf), JPMorgan was assigned $13 billion in OCI, more than any of the 31 lenders in this year’s test. It also estimated that the bank would face roughly $107 billion in loan, investment and trading losses in that scenario.
Without specifying a number, the bank said that should its analysis be correct, "the resulting stress losses would be modestly higher than those disclosed by the Federal Reserve".
Some media reports say the new findings may delay JPMorgan' stock repurchase plans, although the banks did not publicly comment on that.
The move is not as unusual as it may seem. In 2023, Citigroup and Bank of America made similar moves and claimed their projected income would differ from the Fed's results. There have also been critics claiming that some aspects of the annual stress test exams were too opaque.