JPMorgan Chase, which has grown by more than 50% since the start of the financial crisis, is going on a diet.
Reuters reports that the bank is shedding holdings to appease regulators including the Federal Reserve: if the bank gets rid of enough trading assets, derivatives, and investment securities, it can be deemed a little less risky by the Fed, which in turn could help it boost profitability and return more capital to shareholders.
By the Fed's formula, JPMorgan is the U.S. bank whose failure would be the most catastrophic for the financial system, because of its size, complexity, and connections to other lenders and institutions.
In the second quarter, in a little-noticed move, the bank cut almost $128 billion, or 5 percent, of assets from its books compared with the first quarter, bringing the total to $2.45 trillion.
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