JPMorgan Closes Prop. Desk Poached By Citadel

Nov 5 2008 | 4:09am ET

JPMorgan Chase has closed its global proprietary trading desk, a division wracked by departures to Citadel Investment Group. The desk took center stage in September after JPMorgan cut off counterparty trading for a day, accusing the hedge fund of poaching its employees.

The bank announced the closure last week, redistributing the desk’s 75 employees to other parts of the bank. JPMorgan vigorously denied that the move had anything to do with the departure of employees to Citadel, a notion disputed by banking analyst Dick Bove.

“The reason is that apparently Citadel has pirated so many employees out of this division that it made sense to close it and pass along its functions to other trading operations within the company,” he wrote in a note to investors.

Some of the desk’s employees are likely to be laid off, with others transferred to commodities, fixed-income, equities, foreign exchange and emerging markets duties.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...

 

FINalternatives Trending

From the current issue of