Sunday, 1 March 2015
Last updated 1 day ago
Sep 22 2008 | 3:45am ET
The trading tiff between JPMorgan Chase and Citadel Investment Group is over almost as quickly as it started.
JPMorgan cut off counterparty trading with the Chicago-based hedge fund on Thursday, reportedly in response to the latter’s poaching of several employees. But the two sides had ironed out their differences by Friday, and JPMorgan lifted its trading ban.
The dispute between the two banks came to a head following Citadel’s hire of Greg Boester, an adjustable-rate mortgage securities trader on Wednesday. JPMorgan has complained that earlier Citadel hires of its employees have been in violation of contractual agreements, a point that Citadel disputes. But Boester’s hire was apparently the straw that broke the camel’s back, as Steve Black, co-head of JPMorgan’s investment bank, called Citadel founder Kenneth Griffin on Wednesday night to inform him that the hedge fund could no longer trade with JPMorgan, The Wall Street Journal reports.
The trading bar did not affect JPMorgan’s financing and clearing arrangements with Citadel, a point that Griffin emphasized in a letter to investors.
“We do not anticipate any disruption to our business, as we continue to interact closely with our numerous other trading counterparties and with JPMorgan for both clearing and financing,” Griffin wrote. “We regret that JP Morgan has chosen this course of action.”
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…