JPMorgan Closes Prop. Desk Poached By Citadel

Nov 5 2008 | 3:09am 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

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note