Even JPMorgan, a Wall Street winner since the financial crisis and now the world’s biggest investment bank, is considering shrinking some trading businesses because new rules make them less profitable.
Bloomberg News reports that the firm is reviewing the size of capital-intensive units such as interest-rates trading, prime brokerage and its so-called delta-one equities desk, according to Daniel Pinto, chief executive officer of JPMorgan’s corporate and investment bank.
Pinto isn’t necessarily looking to exit any businesses or make significant job cuts, he said in an interview.
'Our scale gives us leading positions across these businesses even as others pull back', said Pinto, 52. 'But there are always ways to streamline things and be more efficient'.
JPMorgan generated $4bn more revenue from investment banking and trading than its next-closest competitor last year, producing $25.3bn.
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