NEW YORK (TheStreet) -- JPMorgan Chase (JPM) bought back $4.4 billion in stock during the third quarter, well ahead of expectations, but shareholders were not too pleased about the timing of the purchases.
Shares of the bank dropped 26% during the third quarter, which means the bank might have been able to pick up shares at better prices.
CEO Jamie Dimon apologized for the poor timing of the investment during the analyst conference call on Thursday. "It would have been wiser to wait. We are sorry," he said.
The bank has fully exhausted the $8 billion approved for buybacks in 2011, which means it cannot offer any further support to the shares through the buyback program.The management also did not outline any further plans to buy back stock. That was in contrast to the previous quarter, when the bank said it will actively seek ways to return excess capital to shareholders. Dimon said the change in tone was because the bank was struggling with "capital confusion." The management had to determine when and how to use their excess capital. One decision they faced was whether to deploy capital towards more buybacks or snap up assets that were going on sale in the market. Another decision was how soon they wanted to meet Basel III capital requirements and said that banks needed more guidance from regulators on that regard. --Written by Shanthi Bharatwaj in New York
>To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV