April 7, 2014 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

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

P A L M B E A C H S T R A T E G I C F O R U M P A L M B E A C H S T R A T E G I C F O R U M G L O B A L R E G U L A T O R Y O V E R V I E W The Regulatory Reform Agenda 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 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 Volcker Rule Title II Title VII European Market Infrastructure Regulation (EMIR) Basel III Capital Requirements Directive (CRD IV) Liquidity Coverage Ratio (LCR) Policy ImplementationPolicy completionNew/ Developing policies 2 4

P A L M B E A C H S T R A T E G I C F O R U M P A L M B E A C H S T R A T E G I C F O R U M G L O B A L R E G U L A T O R Y O V E R V I E W 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  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 Securitization  Enhancing capital requirements and market standards for originators and investors to improve the strength and safety of securitization markets Data  Reforms related to data quality, risk management, regulatory reporting, data security, privacy and data use 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 OTC Derivatives  Enhancing pre- and post-trade transparency, promoting the use of electronic trading venues and central clearing, and bolstering capital and margin requirements 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 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 Mortgages  Reforming the nation's housing finance system Too Big to Fail  Ensuring the resolvability of systemically important financial institutions, including drafting living wills Fiduciary Standards  Proposals to standardize the care that investors receive from financial professionals, whether financial advisers or broker-dealers Top 12 Regulatory Policy Issues for JPMC 3 3

P A L M B E A C H S T R A T E G I C F O R U M P A L M B E A C H S T R A T E G I C F O R U M G L O B A L R E G U L A T O R Y O V E R V I E W 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 5