J.P. Morgan Chase & Co confirmed that it has received permission from U.S. regulators to repay in full the $25 billion preferred investment it accepted through the Troubled Asset Relief Program (TARP). The company plans to repay the funds in full and with accrued dividends at a closing time determined by the U.S. Treasury.
Following the repayment, the company’s capital position is expected to remain extremely strong, with Tier One Capital of approximately $118 billion, or 9.3%, and Tier One Common of about $93 billion, or 7.3% anticipated at the conclusion of second quarter 2009. The company also holds over $28 billion in its allowance for credit losses, and it continues to generate significant pre-tax, pre-provision earnings from its industry-leading franchises.
“Paying back TARP at this time is the right thing for JPMorgan Chase, and it’s the right thing for our country,” said Jamie Dimon, Chairman and Chief Executive Officer. He added, “We feel it’s best for our Government to be able to use these funds for other critical purposes.” Dimon reiterated the company’s “commitment to continued robust lending and to doing the right thing for the company’s customers, communities, employees and shareholders.”