Senior executives at JPMorgan Chase (JPM) are calling for an end to mandatory quarterly earnings reports from publicly traded companies.
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JPMorgan Chief Financial Officer (CFO) Jeremy Barnum said the bank supports a Trump administration proposal to end the requirement for public companies to report their financial results every three months, and move instead to reporting twice a year.
U.S. President Donald Trump has argued that doing away with quarterly reporting will cut costs and discourage shortsightedness among publicly traded companies. “We’re very supportive of all initiatives and any initiatives that lessen the burden to ensure that U.S.-listed markets remain maximally robust,” Barnum told reporters.
Somewhat ironically, Barnum made the comments during JPMorgan’s latest earnings call with analysts and media.
The SEC’s Role
The U.S. Securities and Exchange Commission (SEC) is preparing a proposal to end the requirement that public companies issue quarterly financial statements, and provide an option to share results twice a year.
The debate over quarterly reporting reflects a broader push in Washington, D.C. and on Wall Street to rethink disclosure rules and requirements.
JPMorgan CEO Jamie Dimon is one of the most prominent executives in Corporate America who supports ending quarterly reporting requirements. However, critics say doing so will lead to less transparency and harm investors in the long run.
Is JPM Stock a Buy?
JPMorgan Chase’s stock has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on nine Buy and six Hold recommendations issued in the last three months. The average JPM price target of $332.93 implies 7% upside from current levels.
