JPMorgan may need to revise timeline for settlement business exit: Fed's Powell
- Wall Street flat as countdown to Trump's swearing-in begins
- Netflix, Inc. (NFLX) Tops Q4 EPS by 1c; Subs Beat Views
- Apple (AAPL) PT Raised to $140 at BofA/Merrill Lynch; iPhone 8 Will be 'Super-Long' Cycle
- Morgan Stanley Upgrades Tesla Motors (TSLA) to Overweight
- CP's (CP) Outgoing CEO Hunter Harrison, Activist Paul Hilal Said Set to Target CSX Corp. (CSX)
A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar/Files
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
(Reuters) - JPMorgan Chase & Co (NYSE: JPM) may need to change its timeline for an exit from the business of settling trades of U.S. government securities, Federal Reserve Governor Jerome Powell said on Monday.
Powell said JPMorgan had publicly recognized the importance of not disrupting financial markets when it leaves the business.
"The timeline set for a gradual transition over the next two years should be sufficient to avoid significant dislocations," Powell said in prepared remarks for a conference in New York on the structure of the U.S. Treasury market.
"However, if unexpected complications arise, that timeline may need to be adjusted," Powell said.
Currently, JPMorgan and Bank of New York Mellon Corp (NYSE: BK) are the only two companies that provide settlement services for U.S. government securities.
"Any disruptions to these critical market services could have serious consequences for financial stability," Powell said, adding that the Bank of New York Mellon will continue to be held to higher standards of resilience given its systemic importance.
(Reporting by Jason Lange in Washington; editing by Diane Craft)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Citigroup unit to pay $25 million over 'spoofing' in U.S. Treasury futures
- Massey ex-CEO's conviction upheld over fatal mine blast
- UK's Brexit plans mean border controls unlikely: Ireland's Noonan
Create E-mail Alert Related CategoriesReuters
Related EntitiesJPMorgan, Jerome Powell
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!