J.P. Morgan To Shut Prop Trading Desks (JPM)

J.P. Morgan JPM announced on Bloomberg TV that it was going to shut its prop trading desk due to the new financial regulatory rules. A report from Yahoo confirms this news. There were rumors a few weeks ago that Goldman Sachs GS was shutting its prop trading desk, but those rumors proved to be unfounded. Citigroup C and Bank of America BAC have started this practice, of moving away from "prop-trading". The banks have since moved their prop traders to client-based desks, where their functions are the same, but their titles are different.