JPMorgan Nixes Stock Repurchases

In the text, we argue that stock repurchases are a close substitute for cash dividends. However, an important caveat is that this is true when a stock repurchase is made, not when it is announced. JPMorgan announced today that it is suspending its stock repurchase plan, which was expected to be $13 billion through 2013. While stock repurchases have increased, so has the cancellation of previously announced stock repurchase plans. http://finance.yahoo.com/news/jpmorgan-suspends-stock-repurchase-plans-141833976.html