JP Morgan to Shutter Proprietary Trading Unit
Aug 31st 2010 7:00PM
Updated Sep 1st 2010 6:20AM
JP Morgan Chase & Co. (JPM) will shut down its proprietary commodities trading division in an effort to comply with recent federal regulations related to investment banking, Bloomberg News reported, citing a person familiar with the process that it didn't identify.
The company will also close down its fixed income and equities proprietary trading operations at a later date, the wire service said, citing the same anonymous source. JPMorgan's proprietary commodities unit is based in London.
Congress earlier this year passed regulations designed to limit risks that could be taken by financial institutions. It was an effort to prevent a repeat of the 2008 financial meltdown. Regulations related to proprietary trading have been referred to as the Volcker rule because of ex-Federal Reserve Chairman Paul Volcker, who pushed for such regulations.
JP Morgan representatives didn't immediately respond to a request for comment from DailyFinance.