JPMorgan boosts buyback by $1.88 billion with Fed's blessing

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JPMorgan Chase & Co., the biggest U.S. bank by assets, can buy back an additional $1.88 billion in stock through June after getting clearance from the Federal Reserve.

That would be on top of the $6.4 billion in buybacks approved by regulators in last year’s capital plan, the New York-based bank said Thursday in a  statement. “The firm has received a non-objection from the Board of Governors of the Federal Reserve System to this increase,” the company said.

JPMorgan joins Capital One Financial Corp. in bolstering buyback plans ahead of this year’s Fed stress test. Last month, Capital One added a $300 million authorization, which was “symbolically important” for the industry because it signaled regulators were receptive to the move,  Christopher Donat, a Sandler O’Neill & Partners analyst, wrote at the time.

JPMorgan climbed 0.9 percent to $59.27 at 5:15 p.m in extended trading in New York. The shares had dropped 11 percent from Dec. 31 through the close of regular trading Thursday.

On Feb. 11, JPMorgan Chief Executive Officer Jamie Dimon spent $26.6 million to buy 500,000 shares of the bank. The stock hit its low for the year that day and has rallied 12 percent since.