Source: JPMorgan Chase closing proprietary trading desks to comply with new law

Source: JPMorgan Chase halting proprietary trading

BOSTON — A source familiar with the situation says JPMorgan Chase & Co. is shutting down its proprietary trading desks and eliminating dozens of jobs to comply with new restrictions on investment banks.

The source spoke Tuesday to The Associated Press on condition of anonymity because JPMorgan Chase isn’t formally announcing the move.

The overhaul of financial regulations signed into law in July limits proprietary trading in which an investment bank trades on its own accounts for its own profit, rather than on behalf of clients.

The source says JPMorgan Chase is responding by closing proprietary desks that trade stocks, bonds and commodities. The desks are in several locations around the globe. Roughly 80 employees will lose their jobs.