JP MORGAN CHASE(JPM) - 2025 Q4 - Annual Report

Regulatory Oversight - JPMorgan Chase & Co. is subject to comprehensive consolidated supervision and regulation by the Federal Reserve as a bank holding company and financial holding company[13]. - The Federal Reserve establishes capital, liquidity, and leverage requirements for JPMorgan Chase that align with the Basel III framework[19]. - The Federal Reserve's Stress Capital Buffer (SCB) requirement for large banks, including JPMorgan Chase, will remain at current levels through September 30, 2027[24]. - The OCC has established heightened supervisory standards for large banks, including minimum standards for risk governance frameworks[35]. - JPMorgan Chase Bank, N.A. is supervised by the OCC and the FDIC, which can impose corrective capital or managerial requirements[14][15]. - The firm must conduct annual company-run stress tests and submit a capital plan to the Federal Reserve[22]. - The Federal Reserve may limit an FHC's ability to conduct permissible activities if it fails to meet eligibility requirements[17]. - The firm is required to serve as a source of financial strength for its depository institution subsidiaries[27]. - The FDIC has broad powers to transfer assets and liabilities without creditor approval upon the insolvency of JPMorgan Chase Bank, N.A.[33]. Workforce Composition - As of December 31, 2025, JPMorgan Chase had a total of 318,512 employees globally, with 58% located in the U.S.[57]. - The employee distribution by region includes 185,208 in North America, 96,499 in Asia-Pacific, 31,030 in Europe/Middle East/Africa, and 5,775 in Latin America/Caribbean[57]. - The largest line of business (LOB) is Consumer & Community Banking (CCB) with 144,196 employees, followed by Corporate & Investment Bank (CIB) with 94,563 employees[57]. - The firm’s workforce composition shows that 42% of total employees identify as White, 22% as Hispanic, 20% as Asian, and 13% as Black[59]. - Gender representation indicates that 52% of employees are men and 48% are women, with senior level positions held by 71% men and 29% women[59]. Regulatory Changes and Compliance - The firm is subject to ongoing regulatory changes, including the proposed reduction of maximum interchange fees for debit card transactions by the Federal Reserve[42]. - The Consumer Financial Protection Bureau (CFPB) plans to propose a new rule regarding consumer data availability in the first quarter of 2026, which may impact the firm[41]. - The firm’s asset and wealth management businesses are facing new fiduciary rule regulations that could affect fee and compensation practices[47]. - The Corporate Sustainability Reporting Directive (CSRD) will expand EU ESG reporting requirements starting in fiscal year 2024, impacting the firm’s operations[55]. - The firm’s compensation practices are under scrutiny by the Federal Reserve to ensure they do not encourage imprudent risk-taking[54]. Employee Benefits and Development - JPMorganChase offers extensive benefits and wellness packages, including healthcare coverage, retirement benefits, and mental health resources[67]. - The Firm's compensation philosophy emphasizes pay-for-performance practices to attract and retain top talent, aligning with shareholder interests[66]. - Employees are required to complete a training curriculum covering Firm policies and standards, enhancing professional development[65].