NEW YORK, Thu Aug 30, 2012 – JPMorgan Chase, 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 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. and the computer glitch at market maker Knight Capital Group Inc. 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.