JPMorgan Chase & Co. will cut up to $100 billion in client excess deposits in an attempt to limit the amount of borrowed money the company relies on to prevent future economic crises.
The multinational bank, currently the largest in the United States, will do "whatever it takes" to remain below a 5 percent capital buffer requirement introduced by the Federal Reserve last year, Chief Financial Officer Marianne Lake told investors on Tuesday, according to Bloomberg Business.
"As these rules take effect, it's imperative that every dollar of capacity is deployed as efficiently as possible," the company wrote in a memo.
JPMorgan Chase & Co. is expected to add more than $20 billion, as the regulations require a doubling of the capital surcharge international regulators recommended for the company, the site also reports.
The company has been at the center of speculation suggesting it may split up into smaller, separate companies. Although Chase officials have not made formal announcements about the future of their company, Goldman Sachs analysts have expressed that a breakup of the company is rational.
"A breakup could create value by reducing or removing JPM's 20%-plus discount to pure play peers and increasing capital returns and return on equity," a report released by the company reads, according to Forbes.
