JPMorgan to scrap standalone proprietary-trading desk

A lack of investment opportunities is prompting financial institutions to rein in their once-thriving in-house hedge funds, as evidenced by JPMorgan Chase's move to cut its global proprietary-trading desk. "Our business and industry have changed dramatically this year, and within this new market paradigm, the advantages of aligning our proprietary-trading activities with the core business are clear," Steve Black and Bill Winters, co-heads of JPMorgan's investment bank, wrote in a memo to employees. The development could lead to job losses, sources said.

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Financial Times (free content) · Wall Street Journal, The

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