JPMorgan Gets $3 Billion Buyback OK, Shares Jump

NEW YORK ( TheStreet) -- JPMorgan Chase ( JPM) said in a regulatory filing that it has won the Federal Reserve's approval to buy back $3 billion worth of stock in the first quarter of 2013.

The bank suspended its $15 billion buyback program in May in the wake of its multi-billion dollar trading loss. Earlier, JPMorgan has won approval from the regulator to purchase $12 billion in stock in 2012 and $3 billion in the first quarter of 2013. It was also permitted to raise its dividend to 30 cents a share from 25 cents a share.

The Fed's stamp of approval might help the bank put the "London Whale" debacle behind it once and for all.

Up to May 2012, the bank managed to purchase about 49 million shares for $1.6 billion.

Management said it awaits details about the 2013 CCAR (Comprehensive Capital Annual Review) process in mid- November.

Shares were up 2% in premarket trading.

-- Written by Shanthi Bharatwaj in New York.
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

If you liked this article you might like

Bank Stocks Move Higher Ahead of Federal Reserve Meeting

CEOs Focused on Tax Reform, Business Roundtable Survey Says

All Eyes on the Godfather of Central Banking as Fed Has Huge Meeting This Week

Chase Hires Amazon Customer-Service Exec as Digital's Rise Reshapes Branches

Here Are Monday's Hottest Stocks as the Dow Reaches New Records