JP Morgan Chase 2014 Annual Report Download - page 25

2323
III. A NEW GLOBAL FINANCIAL ARCHITECTURE
However, a small percentage of our products
and services will require some surgery (more
on that later). In addition, because some
companies are making large strategic moves,
we would expect to see an ongoing shift in
market shares and pricing. It is possible that
we will benefit from both of these trends.
While uncertainty remains, the contours to
the new rules are largely known, and we have
made enormous progress adapting to them
The chart below describes the new rules and
regulations with which we need to comply.
And remember, these new rules aect each
product, business, legal entity and client.
Every requirement has a few hundred
2015 Financial Architecture
Description Selected requirements Selected JPMorgan Chase actions
Capital
 Improving the banking sector’s
ability to absorb losses arising from
financial and economic stress
 750+ requirements with 21
regulators involved
 ~27 dierent capital ratio
requirements
 950+ people
 20,000+ pages of supporting
documentation
 225+ new models
Liquidity
 Ensuring banks hold sufficient
liquid assets to survive acute
liquidity stress
 Prevent overreliance on
short-term wholesale funding
 500+ requirements
 15+ jurisdictional variations
expected
 400+ people
 Process and store 1+ billion records
per day from 200+ feeds
Recovery & Resolution
 Ensuring the resiliency of firms
to prevent failure
 Preparing living wills
 Annual global recovery plan
 Annual resolution plans for 34
entities, with plans by business
and critical operations
 10+ jurisdictions issued or
proposed Recovery & Resolution
regulation, with more expected
 1,000+ people
 1+ million work hours devoted
annually
Mortgages
 Reforming the nation’s housing
finance system
 Expanding origination, servicing
and securitization regulation
 90+ new, proposed or amended
rules, notices and regulations
contained within ~13,000 pages
of regulatory text
 ~2,000 pages of systemic reform
legislation introduced
 ~800,000 compliance training
hours
 ~1.4 million work hours
dedicated to systems and process
implementation
Data reporting
and management
 Enhancing data-related capabilities
by increasing accountability
and transparency for data quality
 Improving the firm’s ability to
collect, manage and report on data
in order to facilitate greater market
and product transparency
 11 principles with 1,000+
requirements
 3,300+ pages of requirements,
principles and guidance
 1,000+ people working across
43 business groups
 120+ distinct programs with
1,400+ milestones
Derivatives
 Enhancing pre- and post-trade
transparency
 Promoting use of electronic trading
venues and central clearing
 Bolstering capital and margin
requirements
 99 proposed or finalized
regulations (U.S.) and 237 final
articles (European Union)
 3,150+ pages of requirements and
guidance
 700+ people
 60 workstreams
Volcker
 Restricting banks from undertaking
certain types of market activities
 Controlling risks associated with
certain trading and funds-related
activity
 1,000+ pages covering 36
requirements, with 5 regulators
involved
 300+ people
 7 trading metrics reported
monthly across 15 business
areas
Note: This list of regulations is not comprehensive; estimates of resources are approximate