JPMorgan consolidates business units to comply with Dodd-Frank

JPMorgan Chase & Co. has consolidated its main business units in order to comply with upcoming requirements mandated by the 2010 Dodd-Frank Act, as well as Basel III capital requirements.

The units are involved in client asset management and sourcing in addition to brokering customer trades in the derivatives and securities markets, ValueWalk reports.

The bank said that the consolidation of its main business units is a strategic move designed to allow the bank to better serve its customers under the new regulatory requirements, adding that the new approach will attract more customers.

Emily Portney, the head of global futures and options at JPMorgan’s Investment Bank, will head the newly consolidated units, which are being referred to by the bank as the “Hub” for agency clearing, collateral management and execution.

“The regulatory environment and our clients are driving this,” Portney said, according to ValueWalk. “We are putting this all together so it’s much more seamless.”

The move comes just after nine major banks, including JPMorgan, submitted “living wills,” or emergency plans mandated by Dodd-Frank that could be implemented to wind down a financial institution in the event of its failure, to regulators. Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan Stanley and UBS submitted the plans, which are intended to reduce risk to the U.S. financial system, to regulators earlier this month.

Global banks are also preparing to comply with new Basel III requirements that require banks to increase common-equity for risk-based assets by five percent. Basel III requirements will be implemented by January 2013, ValueWalk reports.

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