Answer

JPMorgan (Q2 2026) — Update on potential regulatory adjustments (G-SIB surcharge / Basel III)

What the excerpts indicate about “adjustments” to regulatory proposals

In the provided earnings transcript excerpts, management does not describe any concrete, newly approved changes or an announced regulatory revision specifically to the G-SIB surcharge or Basel III endgame. Instead, the discussion is focused on (a) how regulators are applying certain components of the framework and (b) what changes management believes regulators should make.

G-SIB surcharge: management’s main message is about the method and fairness of the calibration

Management (and related commentary in the excerpt) argues that regulators’ approach to the G-SIB framework should be recalibrated to be “fair” and to avoid “falsely done” calculations. Specifically:

Regulators are said to be using a methodology that increases the capital burden on “banks like us” relative to “former investment bank competitors” due to the way short-term wholesale funding is treated in the G-SIB score calculation. ¹
The excerpt pinpoints a specific technical mechanism: “removing RWA from the denominator of the short-term wholesale funding contribution to the G-SIB score.” ¹
Management explicitly characterizes that outcome as “disproportionately damaging the ability of banks to serve Main Street,” and argues regulators should not produce that result “by accident.” ¹
Separately, the excerpt states “they should adjust the G-SIB the way they’re supposed to going back to 2015.” ²

Bottom line on updates: based on the excerpts, JPMorgan is not reporting a new regulatory outcome; rather, it is reiterating its stance that the G-SIB quantification (including the short-term wholesale funding element) is being applied in a way that management believes is inappropriate and should be corrected. ¹²

Basel III endgame: no “update” beyond expectation/timing and a wish for stability/tailoring

The transcript does include an outlook on process and timing:

Management references “Basel III endgame” and says it is hoped it will be codified “maybe by the end of the year.” ³
It also references “tailoring” as a next-year expectation. ³

Additionally, management frames the broader regulatory environment as potentially moving toward more stability, which they view as desirable (even if they acknowledge it might be “nonpartisan” and not purely optimistic). ⁴

Bottom line on updates: the excerpts suggest timing expectations (codification by year-end and tailoring next year) rather than any specific substantive revisions to Basel III components already proposed. ³

Broader regulatory proposals: what would constitute “progress” in management’s view

Beyond G-SIB and Basel III, management offers a set of “four obvious changes” they believe regulators should make, including items beyond capital structure basics:

Removing “double count” in operating risk capital. ²
Removing “double count” in market risk capital. ²
Adjusting the G-SIB calibration as described above. ²
Changing the way “short-term wholesale funding” is done “to be fair to everybody.” ²

Management also emphasizes a principle: if regulators want banks to hold more capital, they should do so directly rather than using “numbers” that management views as constructed to increase the required figure. ²

Bottom line on “adjustments”: the excerpts outline management’s recommended changes and their rationale (fairness, accuracy, and avoiding methodological double-counting), but they do not report that regulators have adopted them. ²

Overall takeaway for the question (“any update” on potential adjustments?)

From these excerpts, the “development” is primarily managerial advocacy plus process expectations, not a confirmed regulatory revision:

No confirmed adjustment to G-SIB surcharge mechanics is described; the key points are that management believes the current approach (notably the short-term wholesale funding treatment in the G-SIB score) increases burden disproportionately and should be corrected. ¹²
Basel III endgame: management’s update is about expected milestones (codification potentially by year-end; tailoring next year), with no specific new amendment detail in the excerpts. ³
Regulatory stability: management expresses hope for reduced oscillation and a move toward regulators focusing more on “safety and soundness,” which they believe could help the environment become steadier for banks (though they explicitly note they will “leave that question” on valuations to others). ⁴⁵

So, the excerpts support that JPMorgan is still pressing for specific methodological and calibration changes (especially around G-SIB and capital components), while the only “update” on Basel III-like proposals is the timing expectation for codification and tailoring. ¹²³

References

JPMorgan Chase & Co. (JPM) earnings transcript 2026 - Q2

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JPMorgan Sees No Concrete G-SIB or Basel III Revisions Yet for Q2 2026

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Research question

Answer

JPMorgan (Q2 2026) — Update on potential regulatory adjustments (G-SIB surcharge / Basel III)

What the excerpts indicate about “adjustments” to regulatory proposals

G-SIB surcharge: management’s main message is about the method and fairness of the calibration

Basel III endgame: no “update” beyond expectation/timing and a wish for stability/tailoring

Broader regulatory proposals: what would constitute “progress” in management’s view

Overall takeaway for the question (“any update” on potential adjustments?)

References

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