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JPMorgan seeks to reduce clearing and settlement risks: WSJ
August 31, 2012 / 3:14 AM / 5 years ago

JPMorgan seeks to reduce clearing and settlement risks: WSJ

(Reuters) - JPMorgan Chase (JPM.N), a major player in providing clearing and settlement services to other financial firms, plans to reduce some services to clients and sever ties with others as it seeks to reduce risks involved in the business, the Wall Street Journal said.

JPMorgan Chase & Co's international headquarters are seen on Park Avenue in New York July 13, 2012. REUTERS/Andrew Burton

JPMorgan is looking to assess the profits clients generate for the bank versus risks they pose after the collapse of broker-dealer MF Global Holdings Ltd MFGLQ.PK and the computer glitch at market maker Knight Capital Group Inc KCG.N highlighted dangers, the paper said, citing people familiar with the bank.

The bank already has stopped serving some clients, but the newspaper said their names could not be obtained.

Previously undisclosed details of the aftermath of Knight’s mishap, including JPMorgan’s refusal to accept thousands of Knight-owned securities as the brokerage firm scrambled to put new financing in place, underline the bank’s risk-averse stance, the paper said.

However, Knight Capital is not on the list of clients JPMorgan is contemplating dumping, people familiar with the bank told the WSJ.

JPMorgan could not immediately be reached for comment by Reuters outside of regular U.S. business hours.

Reporting by Sakthi Prasad in Bangalore; Editing by Edwina Gibbs

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