April 7, 2014

1. G L O B A L   R E G U L A T O R Y   O V E R V I E W Tim Ryan The International Economic Forum of the Americas Palm Beach Strategic Forum April 7, 2014

2. Status of Financial Sector Regulatory Reform 1 Status of Dodd-Frank Rulemakings* Status of EU Regulatory Rulemakings* G L O B A L   R E G U L A T O R Y   O V E R V I E W Source: Dodd Frank Progress Report, April 2014, Davis Polk Source: JPMorgan Estimates, March 2014 *Rulemaking counts are based on estimates and require judgment. 1

3. The Regulatory Reform Agenda 2 New/ Developing policies Policy completion Policy Implementation • Mortgage/ Government-sponsored enterprise (GSE) Reform • Long Term Debt Requirement • Short-term Wholesale Funding • Net Stable Funding Ratio (NSFR) • Interest Rate Risk in the Banking Book • Bank Recovery and Resolution Directive (BRRD) • Markets in Financial Instruments Directive (MiFID) • Money Market Funds • Leverage Ratio • Securitization/Risk Retention • Single Counterparty Credit Limits • Fundamental Review of the Trading Book • Volcker Rule • Title II • Title VII • European Market Infrastructure Regulation (EMIR) • Basel III • Capital Requirements Directive (CRD IV) • Liquidity Coverage Ratio (LCR) G L O B A L   R E G U L A T O R Y   O V E R V I E W 4

4. Top 12 Regulatory Policy Issues for JPMC 3 Capital and Liquidity • Improving the banking sector’s ability to absorb losses arising from financial and economic stress • Ensuring banks hold sufficient liquid assets to survive an acute liquidity stress and prevent over-reliance on short-term wholesale funding Too Big to Fail • Ensuring the resolvability of systemically important financial institutions, including drafting living wills Mortgages • Reforming the nation's housing finance system Market Structure (Non-OTC Derivatives) • Includes technology advances and innovation, marketplace and post-trade fragmentation, cost containment, fluctuating trading volumes and volatility, and the need to deliver and enhance transparency industry-wide Shadow Banking • Credit intermediation that involves entities and activities outside the regular banking system, and raises systemic risk concerns, in particular by maturity/liquidity transformation, leverage and flawed credit risk transfer, and/or regulatory arbitrage concerns OTC Derivatives • Enhancing pre- and post-trade transparency, promoting the use of electronic trading venues and central clearing, and bolstering capital and margin requirements   Securitization • Enhancing capital requirements and market standards for originators and investors to improve the strength and safety of securitization markets G L O B A L   R E G U L A T O R Y   O V E R V I E W Data • Reforms related to data quality, risk management, regulatory reporting, data security, privacy and data use Fiduciary Standards • Proposals to standardize the care that investors receive from financial professionals, whether financial advisers or broker-dealers Consumer Protection (Non-Mortgage Related) • Expanding regulatory oversight of the design, pricing, marketing, sale, and distribution of consumer financial products Bank Structure • Restricting banks from undertaking certain types of market activities, and insulating retail banking from wholesale banking (i.e. Volcker) Money Market Funds • Addressing the susceptibility of money market funds to runs and preventing a repeat of 2008 events 3

5. Considerations as Regulatory Reform Moves to the Next Phase 4 • Management decision-making vs. regulator decision-making • Bond holders vs. shareholders/derivatives counterparties • Simplicity vs. complexity • Home vs. host >>> holding companies vs. subsidiaries • Push in vs. push out >>> ring-fencing vs. universal banking • Consistency vs. gold-plating • Banks vs. the shadows • Core vs. non-core G L O B A L   R E G U L A T O R Y   O V E R V I E W 5