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Monday, September 22, 2008

JP Morgan Bans Trading With Citadel

JP Morgan decided it had had enough with senior executives exiting to join Citadel Investment Group. JP Morgan responded by halting trading with the hedge fund across stocks, bonds and foreign exchange.
Starting earlier this year, a number of JP Morgan execs began moving over to Citadel. This included Derek Kaufman, who joined as senior managing director and head of the U.S. fixed income business; Bill King, who joined as senior managing director and head of securitized products; and Patrik Edsparr who became CEO for Citadel Europe and head of global fixed income. "It's a strong action for JP Morgan to get to the point where this ban gets out in the market," says Denise Valentine, senior analyst at Aite Group. "It's a dramatic statement about both firms, especially when tensions are high across the board right now."

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