JPMorgan Chase & Co. (NYSE: JPM) will be eliminating is proprietary trading desks in order to comply with new federal regulations banning banks from taking risks with their own money to generate additional revenue, according to a report late Tuesday from Bloomberg News.
The new regulation, termed the “Volcker Rule,” mandates that banks be prohibited from taking on speculative investments, a rule proponed by former Federal Reserve chairman Paul Volcker.
JPMorgan Chase & Co. (NYSE: JPM) has told its commodity traders desks that it would be shut down as the bank moves to end all of its proprietary trading. The desk employs less than 20 traders and makes bets on behalf of the firm itself, rather than for customers.
JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company. JPMorgan Chase’s principal bank subsidiaries are JPMorgan Chase Bank, National Association (JPMorgan Chase Bank, N.A.), a national banking association with United States branches in 23 states, and Chase Bank USA, National Association (Chase Bank USA, N.A.), a national banking association that is the Firm’s credit card-issuing bank. JPMorgan Chase’s principal nonbank subsidiary is J.P. Morgan Securities Inc. (JPMorgan Securities), its United States investment banking firm. Its activities are organized into six business segments: Investment Bank, Retail Financial Services (RFS), Card Services (CS), Commercial Banking (CB), Treasury & Securities Services (TSS) and Asset Management (AM). Its wholesale businesses comprise the Investment Bank, Commercial Banking, Treasury & Securities Services and Asset Management segments. Its consumer businesses comprise the Retail Financial Services and Card Services segments.
Shares of JPMorgan Chase & Co. (NYSE: JPM) traded up 2.64% during mid-day trading on Wednesday, hitting $37.32.
