EFTA00601702.pdf

Table of Contents Filed Pursuant to Rule 424(b)(2) Registration No. 333-191692 The information in this prospectus supplement is not complete and may be changed. This prospectus supplement and the accompanying prospectus are not an offer to sell these securities and are not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted. SUBJECT TO COMPLETION, DATED JULY 22, 2015 Prospectus Supplement (To Prospectus dated ()tuber 11, 2013) HMORGAN CHASE &CO. DEPOSITARY SHARES EACH REPRESENTING A 1/40OA INTEREST INA SHARE OF % NON-CUMULATIVE PREFERRED STOCK. SERIES BB We are offering depositary shares, each representing a I/400* interest in a share of our perpetual % Non-Cumulative Preferred Stock. Series BB. SI par value, with a liquidation preference of $10.000 per share (equivalent to $25 per depositary share) (the " Preferred Stock- ). Each depositary share entitles the holder, through the depositary. to a proportional fractional interest in all rights, powers and preferences of the Preferred Stock represented by the depositary share. We will pay dividends on the Preferred Stock, when, as. and if declared by our board of directors or a duly authorized committee of our board, at a rate of % per annum, payable quarterly in arrears, on and of each year. beginning on 2015. Dividends on the Preferred Stock will not be cumulative. Upon the payment of any dividends on the Preferred Stock, holders of depositary shares will receive a related proportionate payment. We may redeem the Preferred Stock on any dividend payment date on or after . in whole or from time to time in part. at a redemption price equal to 410.000 per share (equivalent to $25 per depositary share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends. We may also redeem the Preferred Stock upon certain events involving capital treatment as described in this prospectus supplement. subject to regulatory approval. If we redeem any Preferred Stock. the depositary will redeem the related depositary shares. See " Risk Factors" beginning on page S-6 for a discussion of certain risks that you should consider in connection with an investment in the depositary shares. Neither the Preferred Stock nor the depositary shares are deposits or other obligations of a bank or are insured by the Federal Deposit lose race Corporation or any other governmental agency. Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the depositary shares or Preferred Stock or determined that this prospectus supplement or the attached prospectus is accurate or complete. Any representation to the contrary is a criminal offense. Per Depositary Share Total(2) S $ Public Offering Price(I ) Underwriting Commissions(3) S $ $ $ Proceeds (before expenses)(3) (I) The public offering price does not include accumulated dividends, if any. that may be declared. Dividends, if declared, will accumulate from the date of original issuance, which is expected to be . 2015. (2) The underwriters also may purchase up to an additional depositary shares within 30 days of the date of this prospectus supplement in order to cover over-allotments, if any. (3) The underwriting commissions of $ per depositary share will be deducted from the public offering price; provided, however, that for sales to certain institutions, the underwriting commissions deducted will be per depositary share, which will increase the proceeds to us with respect to these depositary shares by $ We intend to apply to list the depositary shares on the New York Stock Exchange. If the application is approved, trading of the depositary shares on the New York Stock Exchange is expected to begin within 30 days after they are first issued. We expect to deliver the depositary shares to investors through the book-entry delivery system of The Depository Trust Company and its direct participants, including Euroclear Bank S.A.M.V.. as operator of the Euroclear System. and Clearstreant Banking. societe anonym& on or about • 2015. Our affiliates, including J.P. Morgan Securities LLC. may use this prospectus supplement and the attached prospectus in connection with offers and EFTA00601702 sales of the depositary shares in the secondary market. These affiliates may act as principal or agent in those transactions. Secondary market sales will be made at prices related to market prices at the time of sale. Sole Bookrunner J.P. Morgan Joint Lead Managers Bob% Merrill Lynch Citigroup Morgan Stanley UBS Investment Bank Wells Fargo Securities . 2015 EFTA00601703 Table of Contents In making your investment decision, you should rely only on the information contained or incorporated by reference in this prospectus supplement and the attached prospectus and any relevant free writing prospectus. We have not authorized anyone to provide you with any other information. If you receive any information not authorized by us, you should not rely on it. We are offering to sell the depositary shares only in places where sales are permitted. You should not assume that the information contains or incorporated by reference in this prospectus supplement or the attached prospectus or any relevant free writing prospectus is accurate as of any date other than its respective date. TABLE OF CONTENTS Page Prospectus Supplement Summary S-3 Risk Factors S-6 JPMorgan Chase & Co. S-9 Where You Can Find More Information About JPMorgan Chase S-10 Consolidated Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividend Requirements S-11 Description of the Preferred Stock 5-12 Description of the Depositary Shares S-26 Registration and Settlement S-28 Certain United States Federal Income Tax Considerations S-29 Certain ERISA Considerations S-34 Underwriting S-36 Conflicts of Interest S-39 Independent Registered Public Accounting Firm S-40 Legal Opinions S-40 Page Prospectus Summary 2 Consolidated Ratios of Earnings to Fixed Charges and Preferred Stock Dividend Requirements 6 Where You Can Find More Information About JPMorgan Chase 7 Important Factors That May Affect Future Results 8 Use of Proceeds 10 Description of Debt Securities II Description of Preferred Stock 20 Description of Depositary Shares 28 Description of Common Stock 29 Description of Securities Warrants 30 Description of Currency Warrants 30 Description of Units EFTA00601704 Book-Entry Issuance 33 Plan of Distribution (Conflicts of Interest) 37 Independent Registered Public Accounting Firm 38 Legal Opinions 38 S-2 EFTA00601705 Table of Contents SUMMARY The following information about the depositary shares and the Preferred Stock summarizes, and should be read in conjunction with, the information contained in this prospectus supplement and in the attached prospectus. Securities Offered We are offering depositary shares (or depositary shares if the underwriters exercise their over-allotment option in full), each of which represents a 1/400' interest in a share of our Preferred Stock, with each share of Preferred Stock having a liquidation preference of $10.000 per share (equivalent to 425 per depositary share). Each depositary share entitles the holder to a proportional fractional interest in the Preferred Stock represented by that depositary share. including dividend. liquidation. redemption and voting rights. In addition. we may from time to time elect to issue additional depositary shares representing shares of the Preferred Stock, and all the additional shares would be deemed to form a single series with the depositary shares representing shares of the Preferred Stock offered by this prospectus supplement. Dividends Holders of the Preferred Stock will be entitled to receive, when. as. and if declared by our board of directors or any duly authorized committee of our board of directors, out of assets legally available for payment. non-cumulative cash dividends based on the liquidation preference of $10.000 per share of the Preferred Stock (equivalent to $25 per depositary share). If declared by our board of directors or any duly authorized committee of our board of directors, we will pay dividends on the Preferred Stock quarterly in arrears. on and of each year. beginning on , 2015 (each such day on which dividends are payable. a " dividend payment date" ). We refer to the period from and including any dividend payment date to but excluding the next dividend payment date as a " dividend period." provided that the initial dividend period will be the period from and including the original issue date of the Preferred Stock to but excluding the next dividend payment date. Dividends on the Preferred Stock will accrue from the original issue date at a rate equal to % per annum for each quarterly dividend period. Upon the payment of any dividends on the Preferred Stock, holders of depositary shares will receive a related proportionate payment. Dividends on shares of the Preferred Stock will be non-cumulative. To the extent that any dividends on shares of the Preferred Stock with respect to any dividend period are not declared and paid. in full or otherwise, on the dividend payment date for such dividend period, then such unpaid dividends will not cumulate and will cease to accrue and be payable. and we will have no obligation to pay. and the holders of shares of the Preferred Stock will have no right to receive, accrued and unpaid dividends for such dividend period on or after the dividend payment date for such dividend period. whether or not dividends are declared for any subsequent dividend period with respect to the Preferred Stock or for any future dividend period with respect to any other series of our preferred stock or our common stock. In such a case, no dividends will be paid on the depositary shares. We will not declare or pay or set aside for payment full dividends on any of our preferred stock ranking as to dividends on a parity with or junior to the Preferred Stock for any period unless full dividends on the shares of the Preferred Stock for the most recently completed dividend period have been or contemporaneously are declared and paid (or have been declared and a sum sufficient for the payment thereof has been set aside for such payment). When dividends are not paid in full on the Preferred Stock and any other series of preferred stock S-3 EFTA00601706 Table of Contents ranking on a parity as to dividends with the Preferred Stock, all dividends declared and paid upon the shares of the Preferred Stock and any other series of preferred stock ranking on a parity as to dividends with the Preferred Stock will be declared and paid pro rata. So long as any shares of the Preferred Stock are outstanding. unless full dividends on all outstanding shares of the Preferred Stock have been declared and paid or a sum sufficient for the payment thereof set aside for such payment in respect of the most recently completed dividend period: • no dividend (other than a dividend in common stock or in any other capital stock ranking junior to the Preferred Stock as to dividends and upon liquidation, dissolution or winding-up) will be declared or paid or a sum sufficient for the payment thereof set aside for such payment or other distribution declared or made upon our common stock or upon any other capital stock ranking junior to the Referred Stock as to dividends or upon liquidation, dissolution or winding-up, and • no common stock or other capital stock ranking junior to or on a parity with the Preferred Stock as to dividends or upon liquidation. dissolution or winding-up will be redeemed. purchased or otherwise acquired for any consideration (or any moneys be paid to or made available for a sinking fund for the redemption of any shares of any such capital stock) by us. subject to certain limited exceptions described under" Description of the Preferred Stock—Dividends" . Rights upon Liquidation In the event of our voluntary or involuntary liquidation, dissolution or winding-up, holders of the Preferred Stock will be entitled to receive and to be paid out of our assets legally available for distribution to our stockholders the amount of $10,000 per share (equivalent to S25 per depositary share), plus an amount equal to any declared and unpaid dividends. without accumulation of undeclared dividends, before we make any payment or distribution on our common stock or on any other capital stock ranking junior to the Preferred Stock upon our liquidation, dissolution or winding-up. After the payment to the holders of the shares of the Preferred Stock of the full preferential amounts to which they are entitled, the holders of the Preferred Stock as such will have no right or claim to any of our remaining assets. If. upon our voluntary or involuntary liquidation. dissolution or winding-up, we fail to pay in full the amounts payable with respect to the Preferred Stock and any other shares of our capital stock ranking as to any such distribution of our assets on a parity with the Preferred Stock, the holders of the Preferred Stock and of such other shares will share ratably in any such distribution of our assets in proportion to the full respective distributions to which they are entitled. Neither the sale of all or substantially all of our property or business, nor our merger or consolidation into or with any other entity or the merger or consolidation of any other entity into or with us. will be deemed to be a liquidation. dissolution or winding-up, voluntary or involuntary, of us. Optional Redemption The Preferred Stock is perpetual and has no maturity date. We may redeem, out of assets legally available therefor. the Preferred Stock on any dividend payment date on or after . in whole, or from time to time in part, at a redemption price equal to $10.000 per share (equivalent to $25 per depositary share). plus any declared and unpaid dividends, without accumulation of undeclared dividends. In addition, at any time within 90 days after a " capital treatment event." as described herein, we may provide notice of our intent to redeem the Preferred Stock and may subsequently redeem, out of assets legally available therefor. the Preferred Stock, in whole but not in pail, at a redemption price equal to $10.000 per share (equivalent to $25 per depositary share), plus any declared and unpaid dividends, without accumulation of undeclared dividends. S-4 EFTA00601707 Table of Contents Redemption of the Preferred Stock is subject to our receipt of any required prior approvals from the Board of Governors of the Federal Reserve System. or the " Federal Reserve Board." or any other regulatory authority. Our redemption of the Preferred Stock will cause the redemption of the corresponding depositary shares. Neither the holders of the Preferred Stock nor the holders of the related depositary shares will have the right to require redemption. See " Description of the Depositary Shares" and " Description of the Preferred Stock" for further information about redemptions or repurchases of the depositary shares or shares of the Preferred Stock. Voting Rights The holders of the Preferred Stock and of the depositary shares will not have voting rights. except as specifically required by applicable law and except as provided below under " Description of the Preferred Stock—Voting Rights." For more information about voting rights. see " Description of the Preferred Stock—Voting Rights" and " Description of the Depositary Shares—Voting the Preferred Stock" in this prospectus supplement. Ranking The Preferred Stock will rank, as to payment of dividends and distribution of assets upon our liquidation. dissolution or winding-up. on a parity with any series of preferred stock ranking on a parity with the Preferred Stock. including our outstanding series of preferred stock described under " Description of the Preferred Stock—Other Preferred Stock," and senior to our common stock and to any series of preferred stock ranking junior to the Preferred Stock. Preemptive and Conversion Rights The Preferred Stock is not subject to any preemptive rights and is not convertible into property or shares of any other class or series of our capital stock. The holders of the depositary shares do not have any preemptive or conversion rights. Listing We intend to apply to list the depositary shares on the New York Stock Exchange. If the application is approved, trading of the depositary shares on the New York Stock Exchange is expected to commence within 30 days after they are first issued. We do not expect that there will be any separate public trading market for the shares of the Preferred Stock, except as represented by the depositary shares. Depositary, Transfer Agent, and Registrar Computenhare Inc will serve as depositary. transfer agent and registrar for the Preferred Stock and the depositary shares. Risk Factors See " Risk Factors" on page S-6 in this prospectus supplement for a discussion of factors you should consider carefully before deciding to invest in the depositary shares. S-5 EFTA00601708 Table of Contents RLSK FACTORS Your investment in the depositary shares will involve certain risks. You should carefully consider thefollowing discussion ofrisks and the other information contained in this prospectus supplement and the accompanying prospectus and the documents incorporated by reference in this prospectus supplement and the accompanying prospectus, including our Annual Report on Form 10-Kfor the year ended December 31. 2014, and all subsequent filings under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of1934. before deciding whether an investment in the depositary shares is suitable for you. You are making an investment decision about the depositary shares as well as our Preferred Stock. As described in this prospectus supplement. we are offering depositary shares representing fractional interests in shares of our Preferred Stock. The depositary will rely solely on the dividend payments on the Preferred Stock it receives from us to fund all dividend payments on the depositary shares. You should review carefully the information in this prospectus supplement and the attached prospectus regarding the depositary shares and our Preferred Stock. The Preferred Stock is an equity security and is subordinate to our existing and future indebtedness. The shares of Preferred Stock are equity interests and do not constitute indebtedness. This means that the Preferred Stock will rank junior to all of our indebtedness and to other non-equity claims on us and our assets. including claims in our liquidation. Our existing and future indebtedness may restrict payment of dividends on the Preferred Stock. In addition. holders of the depositary shares representing the Preferred Stock may be fully subordinated to interests held by the U.S. government in the event that we enter into a receivership. insolvency. liquidation or similar proceeding. Additionally. unlike indebtedness. where principal and interest customarily are payable on specified due dates, in the case of preferred stock like the Preferred Stock. (I) dividends are payable only if declared by our board of directors or a duly authorized committee of the board and (2) as a corporation. we are subject to restrictions on dividend payments and redemption payments out of lawfully available assets. Further. the Preferred Stock places no restrictions on our business or operations or on our ability to incur indebtedness or engage in any transactions. subject only to the limited voting rights referred to below under " —Holders of the Preferred Stock will have limited voting rights." Dividends on the Preferred Stock are discretionary and non-cumulative. Dividends on the Preferred Stock are discretionary and non-cumulative. Consequently. if our board of directors or a duly authorized committee of our board does not authorize and declare a dividend for any dividend period prior to the related dividend payment date. holders of the Preferred Stock would not be entitled to receive a dividend for that dividend period and the unpaid dividend will cease to accrue and be payable. We will have no obligation to pay dividends accrued for a dividend period after the dividend payment date for that period if our board of directors or a duly authorized committee of the board has not declared a dividend before the related dividend payment date. whether or not dividends on the Preferred Stock or any other series of our preferred stock or our common stock are declared for any future dividend period. In addition, under the Federal Reserve Board' s capital rules. dividends on the Preferred Stock may only be paid out of our net income. retained earnings or surplus related to other additional Tier I capital instruments. We may be able to redeem the Preferred Stock prior to By its terms, the Preferred Stock may be redeemed by us in whole, but not in part prior to upon our determination in good faith that an event has occurred that would constitute a " capital treatment event." subject to the approval of the appropriate federal banking agency. See " Description of the Preferred Stock—Optional Redemption." S-6 EFTA00601709 Table of Contents Investors should not expect us to redeem the Preferred Stock on the date it becomes redeemable or on any particular date after it becomes redeemable. The Preferred Stock is a perpetual equity security. This means that it has no maturity or mandatory redemption date and is not redeemable at the option of investors, including the holders of the depositary shares offered by this prospectus supplement. The Preferred Stock may be redeemed by us at our option, either in whole. or from time to time in part. on any dividend payment date on or after or. prior to that date, under certain circumstances after the occurrence of a capital treatment event. Any decision we may make at any time to propose a redemption of the Preferred Stock will depend upon. among other things. our evaluation of our capital position. the composition of our stockholders equity. and general market conditions at that time. Our right to redeem the Preferred Stock is subject to limitations. Under the Federal Reserve Board' s current risk-based capital guidelines applicable to bank holding companies. any redemption of the Preferred Stock is subject to prior approval of the Federal Reserve Board. We cannot assure you that the Federal Reserve Board will approve any redemption of the Preferred Stock that we may propose. There also can be no assurance that. if we propose to redeem the Preferred Stock without replacing the Preferred Stock with common equity Tier I capital or additional Tier I capital instruments, the Federal Reserve Board will authorize the redemption. We understand that the factors that the Federal Reserve Board will consider in evaluating a proposed redemption. or a request that we be permitted to redeem the Preferred Stock without replacing it with common equity Tier I capital or additional Tier 1 capital insunments, include its evaluation of the overall level and quality of our capital components. considered in light of our risk exposures. earnings and growth strategy. and other supervisory considerations, although the Federal Reserve Board may change these factors at any time. If the Preferred Stock is redeemed, the corresponding redemption of the depositary shares would be a taxable event to you. In addition, you might not be able to reinvest the money you receive upon redemption of the depositary shares in a similar security. If we are deferring payments on our outstanding junior subordinated notes or are in default under the Indentures governing those securities, we will be prohibited from making distributions on or redeeming the Preferred Stock. The terms of our outstanding junior subordinated notes prohibit us from declaring or paying any dividends or distributions on our preferred stock, including the Preferred Stock. or redeeming. purchasing. acquiring, or making a liquidation payment on the Preferred Stock, if an event of default under the indentures governing those junior subordinated notes has occurred and is continuing or at any time when we have deferred payment of interest on those junior subordinated notes. Holders of the Preferred Stock will have limited voting rights. Holders of the Preferred Stock have no voting rights with respect to matters that generally require the approval of voting stockholders. Holders of the Preferred Stock will have voting rights only as specifically required by applicable law and as described below under " Description of the Preferred Stock—Voting Rights." Holders of depositary shares must act through the depositary to exercise any voting rights of the Preferred Stock. Our ability to pay dividends depends upon the results of operations of our subsidiaries. We are a holding company and conduct substantially all of our operations through subsidiaries. As a result. our ability to make dividend payments on the Preferred Stock will depend primarily upon the receipt of dividends and other distributions from our subsidiaries. Various legal limitations restrict the extent to which our subsidiaries may extend credit, pay dividends or other funds or otherwise engage in transactions with us or some of our other subsidiaries. S-7 EFTA00601710 Table of Contents In addition, our right to participate in any distribution of assets from any subsidiary. upon the subsidiary' s liquidation or otherwise. is subject to the prior claims of creditors of that subsidiary. except to the extent that we are recognized as a creditor of that subsidiary. As a result, the Preferred Stock will be effectively subordinated to all existing and future liabilities of our subsidiaries. You should look only to the assets of JPMorgan Chase as the source of payment for the Preferred Stock. Trading characteristics of the depositary shares. The depositary shares are a new issue of securities, and there is currently no established trading market for the depositary shares. We intend to apply to list the depositary shares on the New York Stock Exchange. If the application is approved, we expect trading of the depositary shares on the New York Stock Exchange to begin within a 30-day period after the initial issuance of the depositary shares. The underwriters have advised us that they intend to make a market in the depositary shares prior to the date trading on the New York Stock Exchange begins. However, they are not obligated to do so and may discontinue any market making in the depositary shares at any time in their sole discretion. Therefore, we cannot assure you that a liquid trading market for the depositary shares will develop, that you will be able to sell your depositary shares at a particular time or that the price you receive when you sell will be favorable. S-8 EFTA00601711 Table of Contents JPMORGAN CHASE & CO. JPMorgan Chase & Co.. which we refer to as " JPMorgan Chase." " we" or " us." is a leading global financial services firm and one of the largest banking institutions in the United States, with operations worldwide. JPMorgan Chase had 52.4 trillion in assets and 4241.2 billion in total stockholders' equity as of June 30. 2015. JPMorgan Chase is a leader in investment banking. financial services for consumers and small businesses, commercial banking. financial transaction processing and asset management. Under the J.P. Morgan and Chase brands. JPMorgan Chase serves millions of customers in the U.S. and many of the world' s most prominent corporate. institutional and government clients. JPMorgan Chase is a financial holding company and was incorporated under Delaware law on October 28. 1968. JPMorgan Chase' s principal bank subsidiaries are JPMorgan Chase Bank. National Association, a national bank with branches in 23 states, and Chase Bank USA. National Association, a national bank that is JPMorgan Chase' s credit card issuing bank. JPMorgan Chase' s principal nonbank subsidiary is J.P. Morgan Securities LLC. our U.S. investment banking firm. One of JPMorgan Chase' s principal operating subsidiaries in the United Kingdom is M. Morgan Securities plc. a subsidiary of JPMorgan Chase Bank. N.A. The prin " ce of JPMorgan Chase is located at 270 Park Avenue. New York. New York 10017-2070, U.S.A.. and its telephone number i S-9 EFTA00601712 Table of Contents WHERE YOU CAN FIND MORE INFORMATION ABOUT JPMORGAN CHASE We file annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission (the " SEC" ). Our SEC filings are available to the public on the website maintained by the SEC at http://www.sec.gov. Our filings can also be inspected and printed or copied. for a fee, at the SEC' s public reference room. 100 F Street. N.E.. Washington. D.C. 20549. Please call the SEC at I -800-SEC-0330 for further information on their public reference room. Such documents, reports and information are also available on our website at hapJfinvestor.shareholder.com/jpmorganchase. Information on our website does not constitute part of this prospectus supplement or the accompanying prospectus. The SEC allows us to " incorporate by reference" into this prospectus supplement and the accompanying prospectus the information in documents we file with it, which means that we can disclose important information to you by referring you to those documents. The information incorporated by reference is considered to be a part of this prospectus supplement and the accompanying prospectus. and later information that we file with the SEC will automatically update and supersede this information. We incorporate by reference (i) the documents listed below and (ii) any future filings we make with the SEC after the date of this prospectus supplement under Section I3(a), 13(c), 14, or 15(d) of the Securities Exchange Act of 1934 until our offering is completed. other than, in each case. those documents or the portions of those documents which are furnished and not filed: (a) Our Annual Report on Form 10-K for the year ended December 31.2014; (b) Our Quarterly Report on Form 10-Q for the quarter ended March 31, 2015: and (c) Our Current Reports on Form 8-K filed on January 2. 2015. January 14, 2015. January 23, 2015, February 12, 2015, February 17, 2015. February 27. 2015. March 6. 2015. March II. 2015. March 20, 2015, March 24. 2015. April I. 2015. April 3, 2015, April 14, 2015, April 21. 2015, May 6, 2015, May 14, 2015, May 20. 2015. May 22, 2015, May 29. 2015. June 4. 2015. June 16. 2015. June 23. 2015, July 1. 2015, July 14, 2015 and July 21.2015. You may request a copy of these filings, at no cost, by writing to or telephoning us at the following address: Office of the Secretary JPMorgan Chase & Co. 270 Park Avenue New York. New York 10017 S-I0 EFTA00601713 Table of Contents CONSOLIDATED RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS The table below sets forth JPMorgan Chase' s consolidated ratios of earnings to combined fixed charges and preferred stock dividend requirements for the periods indicated. Six Months Year Ended December 3141) Ended June 30.2015 2014 2013 2012 2011 2010 Earnings to Combined Fixed Charges and Preferred Stock Dividend Requirements: Excluding Interest on Deposits 4.66 4.46 3.75 3.83 3.31 3.21 Including Interest on Deposits 4.17 3.90 3.25 3.23 2.72 2.68 (1) The ratios foe the yews ended December 31, 2010 through 2014 do not reflect IPMorgan Chase s adupbon. effective January 1. 2015. of new accounting ginclarce for investments in affordable housing project that qualify for the low•rmoene housing tax credit. For additional information. sec our Oarent Report on Form S-K dated April 14. 2015 which is incorporated by reference into gm prospectus supplement. For purposes of computing the above ratios, earnings represent net income from continuing operations plus total taxes based on income and fixed charges. Fixed charges. excluding interest on deposits. include interest expense (other than on deposits). one-third (the proportion deemed representative of the interest factor) of rents, net of income from subleases. and capitalized interest. Fixed charges. including interest on deposits. include all interest expense. one-third (the proportion deemed representative of the interest factor) of rents, net of income from subleases. and capitalized interest. S-11 EFTA00601714 Table of Contents DESCRIPTION OF THE PREFERRED STOCK The terms of the Preferred Stock are setforth in the Certificate ofDesignations, Powers, Preferences and Rights of the Preferred Stock (the " Certificate ofDesignations"). We have summarized below certain terms of the Certificate ofDesignations. This summary supplements the general description ofpreferred stock under " Description ofPreferred Stock" in the accompanying prospectus. If any information regarding the Preferred Stock contained in the Certificate ofDesignations is inconsistent with the information in this prospectus supplement and the prospectus, the information in the Certificate ofDesignations will apply and will supersede information in this prospectus supplement and the prospectus. This summary is not complete. You should refer to the Certificate ofDesignations which will befiled in a Current Report on Fonn 8-K. General The Preferred Stock represents a single series of our authorized preferred stock. We are offering depositary shares. representing shares of the Preferred Stock in the aggregate. or depositary shares, representing shares of the Preferred Stock in the aggregate if the underwriters exercise their over-allotment option in full, by this prospectus supplement and the accompanying prospectus. We may from time to time, without notice to or the consent of holders of the Preferred Stock, issue additional shares of the Preferred Stock. The additional shares of Preferred Stock would be deemed to form a single series with the Preferred Stock represented by depositary shares offered by this prospectus supplement. Upon issuance against full payment of the purchase price for the depositary shares, the shares of the Preferred Stock will be fully paid and nonassessable. The depositary will be the sole holder of the shares of the Preferred Stock. The holders of depositary shares will be required to exercise their proportional rights in the Preferred Stock through the depositary. as described in " Description of the Depositary Shares" in this prospectus supplement. The Preferred Stock will rank senior to our common stock and to any of our other capital stock that states that it is made junior to our preferred stock as to payment of dividends and distribution of our assets upon our liquidation, dissolution or winding-up. The Preferred Stock will rank on a parity with our outstanding series of preferred stock described under " Description of the Preferred Stock—Other Preferred Stock." The Preferred Stock will be subordinate to our existing and future indebtedness. The Preferred Stock will not be convertible into, or exchangeable for. shares of any other class or series of our capital stock or other securities and will not be subject to any sinking fund or other obligation to redeem or repurchase the Preferred Stock. The Preferred Stock is not secured, is not guaranteed by us or any of our affiliates and is not subject to any other arrangement that legally or economically enhances the ranking of the Preferred Stock. Dividends Holders of the Preferred Stock will be entitled to receive. when. as. and if declared by our board of directors or any duly authorized committee of our board of directors, out of assets legally available for payment. non-cumulative cash dividends based on the liquidation preference of $10.000 per share of the Preferred Stock (equivalent to $25 per depositary share). If declared by our board of directors or any duly authorized committee of our board of directors, we will pay dividends on the Preferred Stock quarterly in arrears. on and of each year. beginning on , 2015. S-12 EFTA00601715 Table of Contents Dividends on the Preferred Stock will accrue from the original issue date at a rate equal to % per annum for each quarterly dividend period. We will calculate dividends on the Preferred Stock on the basis of a 360-day year of twelve 30-day months. Dollar amounts resulting from those calculations will be rounded to the nearest cent, with one-half cent being rounded upward. We will pay dividends to the holders of record of shares of the Preferred Stock as they appear on our stock register on such record date, not more than 30 days before the applicable payment date, as will be fixed by our board of directors or a duly authorized committee of our board. In the event that any dividend payment date falls on a day that is not a business day, the dividend payment due on that date will be postponed to the next day that is a business day and no additional dividends will accrue as a result of that postponement. As used in this prospectus supplement. a " business day" means any weekday that is not a legal holiday in New York. New York and is not a day on which banking institutions in New York. New York are authorized or required by law or regulation to be closed. If we call the Preferred Stock for redemption, dividends on shares of the Preferred Stock will cease to accrue on the applicable redemption date as described below under " —Optional Redemption." Dividends on shares of the Preferred Stock will be non-cumulative. To the extent that any dividends on shares of the Preferred Stock with respect to any dividend period are not declared and paid. in full or otherwise, on the dividend payment date for such dividend period, then such unpaid dividends will not cumulate and will cease to accrue and be payable. and we will have no obligation to pay. and the holders of shares of the Preferred Stock will have no right to receive, accrued and unpaid dividends for such dividend period on or after the dividend payment date for such dividend period. whether or not dividends are declared for any subsequent dividend period with respect to the Preferred Stock or for any future dividend period with respect to any other series of our preferred stock or our common stock. We will not pay interest or any sum of money instead of interest in respect of any dividend that is not declared, or if declared is not paid. on the Preferred Stock. We will not declare or pay or set aside for payment full dividends on any of our preferred stock ranking as to dividends on a parity with or junior to the Preferred Stock for any period unless full dividends on the shares of the Preferred Stock for the most recently completed dividend period have been or contemporaneously are declared and paid (or have been declared and a sum sufficient for the payment thereof has been set aside for such payment). When dividends are not paid in full on the Preferred Stock and any other series of preferred stock ranking on a parity as to dividends with the Preferred Stock, all dividends declared and paid upon the shares of the Preferred Stock and any other series of preferred stock ranking on a parity as to dividends with the Preferred Stock will be declared and paid pro rata. For purposes of calculating the pro rata allocation of partial dividend payments. we will allocate dividend payments based on the ratio between the then-current dividends due on shares of Preferred Stock and (i) in the case of any series of non-cumulative preferred stock ranking on a parity as to dividends with the Preferred Stock, the aggregate of the current and unpaid dividends due on such series of preferred stock and (ii) in the case of any series of cumulative preferred stock ranking on a parity as to dividends with the Preferred Stock, the aggregate of the current and accumulated and unpaid dividends due on such series of preferred stock. So long as any shares of the Preferred Stock are outstanding, unless full dividends on all outstanding shares of the Preferred Stock have been declared and paid or a sum sufficient for the payment thereof set aside for such payment in respect of the most recently completed dividend period: • no dividend (other than a dividend in common stock or in any other capital stock ranking junior to the Preferred Stock as to dividends and upon liquidation, dissolution or winding-up) will be declared or paid or a sum sufficient for the payment thereof set aside for such payment or other distribution declared or made upon our common stock or upon any other capital stock ranking junior to the Preferred Stock as to dividends or upon liquidation, dissolution or winding-up. and S-13 EFTA00601716 Table of Contents • no common stock or other capital stock ranking junior to or on a parity with the Preferred Stock as to dividends or upon liquidation, dissolution or winding-up will be redeemed. purchased or otherwise acquired for any consideration (or any moneys be paid to or made available for a sinking fund for the redemption of any shares of any such capital stock) by us. except (I) by co