Reuters: JPM reducing Fed reserves, putting $50b+ into repo, starting to use Fed discount window

JPMorgan gets busy in repo lending after regulatory nod: CFO

JPMorgan Chase & Co (JPM.N) is putting more cash into overnight lending markets and holding less for a rainy day, after discussing the matter with regulators, the bank’s finance chief said on Tuesday.

It is also headed to the “discount window” – the Federal Reserve’s funding-source-of-last-resort – in an effort to help diminish the reputational stain attached to its use and promote alternative funding options in the wake of last year’s frightening bout of volatility in money markets.

JPMorgan has decided it can hold less cash for its resolution plan, and instead, factor in the possibility that it would use the Fed’s emergency lending facility, the discount window.

The full article is available at https://www.reuters.com/article/us-jp-morgan-investor-day-repo/jpmorgan-gets-busy-in-repo-lending-after-regulatory-nod-cfo-idUSKBN20J2PV

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