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.
Most Popular Articles
While the real estate market has lots of challenges during the COVID-19 pandemic, a tsunami of houses being sold by Airbnb hosts who can’t pay their mortgages isn’t one of them. HW+ Premium Content
This week, the “V-shaped” recovery in purchase applications is mimicked by the inverted “V-shaped” recovery of the St. Louis Stress Index. According to HousingWire Columnist Logan Mohtashami, this signals a return to a much more calm financial market.