JPMorgan acts to cut risk

People close to the situation said the decision to fold the 80-strong global proprietary trading unit into JPMorgan's other trading operations could result in job losses and herald another round of redundancies at its investment bank.

JPMorgan, which has acquired the investment bank Bear Stearns and the regional lender Washington Mutual, has already announced 4,100 job cuts, according to Bloomberg data.

JPMorgan's move, announced in an internal memorandum distributed to staff on Monday, is a sign of financial groups' reluctance to use their own capital on large trading bets amid uncertain and volatile market conditions.

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