JPMorgan Chase believes its stress test losses should be greater than the amount disclosed by the Fed.

• JPMorgan Chase announced late Wednesday that the Federal Reserve had overestimated a crucial measure of income for the bank's recent stress test, and that its losses under the examination should have been higher than what the regulator reported.
• The bank issued a press release at midnight ET to reveal its reaction to the Fed's findings.
• According to a source, JPMorgan may need more time to finalize its share repurchase plan due to an error.

JPMorgan Chase announced late Wednesday that the Federal Reserve underestimated a crucial measure of income in the bank's recent stress test, and that its losses under the examination should have been higher than what the regulator reported.

The bank issued a press release at midnight ET to reveal its reaction to the Fed's findings.

JPMorgan stated that the Fed's projections for "other comprehensive income" seem to be overestimated.

JPMorgan was assigned $13 billion in OCI, the highest among the 31 lenders in the Fed's table of projected revenue, income and losses through 2026. Additionally, the bank estimated that it would face approximately $107 billion in loan, investment and trading losses in that scenario.

If the Firm's analysis is accurate, the resulting stress losses would be slightly higher than those reported by the Federal Reserve, the bank stated.

According to a source, JPMorgan may need more time to finalize its share repurchase plan, which was anticipated to be disclosed by banks on Friday after the market closes.

Despite the news that all 31 banks passed the Federal Reserve's annual stress test, there is still concern about the ability of these banks to withstand a severe recession while maintaining capital levels and lending to consumers and corporations.

Last year, both and disclosed that their own income projections differed from the Fed's estimates.

The Fed's annual exam is criticized by banks for being unclear and difficult to comprehend the methods used to generate certain results.