If JPMorgan is lightens up on proprietary trading.....

Discussion in 'Wall St. News' started by Sponger, Nov 4, 2008.

  1. Sponger


    You have to wonder what they see coming down the pike....

    JPMorgan Said to Shut Proprietary Desk, Shed Traders (Update1)

    By Elizabeth Hester

    Nov. 4 (Bloomberg) -- JPMorgan Chase & Co., the largest U.S. bank by market value, will shut down a global proprietary trading desk and shed some of the unit's employees as the firm braces for a recession, a person familiar with the matter said.
  2. wave


    This is not good news at all.
  3. They see a recession
  4. They see a better opportunity to deploy capital.
  5. Would be curious to know the specifics. Seems that this bunch was a separate proprietary group that was making bets cross markets (or in out of favor securities, such as CDO's etc...) and had underlying core competencies that warranted their moving into the single product trading environment.

    I would be very interested to know if this was the quant arbitrage/ automated trading group.

    Anyone know people at JPM? I sure don't.
  6. It was no doubt a group that lost money.
  7. isn't it obvious? they were using high leverage strategies.

    The game is over.

    Word is they will be transfered to low(read new normal) leverage prop desks.
  8. They see Obama
  9. i really like to trade where should i?
  10. Exactly, trading is very capital intensive for a bank and high risk, they probably don't want that right now. And who knows if their strategies only worked in low volatility times?

    This might even be a good sign.

    edit: Here is the link to the story


    What's amazing is how the big banks and their ivey leaguers lost hundred of millions in trading last quarter.
    #10     Nov 4, 2008