Thursday’s Headlines: JPMorgan reorganizes again

eFC logo

Maybe this time it will work better. JPMorgan Chase announced yet another re-organization by breaking its corporate and investment banking division into two units,  The Wall Street Journal reported.

Changes include the creation of a unit called Investor Services, which will include the bank's giant prime-brokerage business servicing hedge funds, as well as financing and securities lending and collateral management. Industry insiders expect custodial assets to be a growth sector as new regulation requires more collateral for swaps and other derivatives trades.

JPMorgan currently holds $17 trillion in client custodial assets. Markets and Investor Services will also include the traditional trading businesses of the investment bank.

The until will be overseen by Carlos Hernandez, who led the equities unit of the investment bank from New York. Blythe Masters, the veteran head of the commodities division, is also adding new duties handling regulatory affairs across the corporate and investment bank.

The banking unit will have three leaders, including London-based Tim Throsby who previously oversaw equities in Europe, the Middle East and Africa and global equity derivatives, and who will now head the investment bank’s equities division.

Other news:

UBS looks to cap banker bonuses. Financial Times

KKR, Apollo and Clayton Dubilier & Rice are considering buying KAR Auction Services in a deal worth up to $4B.   Reuters
Former Goldman trader Greg Smith’s upcoming memoir expands on his explosive op-ed. DealBook
Abercrombie hired Goldman to deal with activist investors. NY Times
Prudential trains job candidates before hiring them, slashing turnover. Fortune
TheStreet will buy The Deal for $5.8B. DealBook
Legg Mason said a $3M in shares given to Joseph Sullivan, the interim chief executive, was part of a retention arrangement. Reuters
European banks that vowed to stop doing business with Iran continue to handle billions of euros for Iranian foreign entities with operations there.  WSJ
Q&A: 'Arbitrage' Director Nicholas Jarecki on Making His Hero a Banker.  BusinessWeek