JP Morgan warns on swaps clearing
Bank says client clearing returns are "incompatible" with current capital rules – business was not built on "halo revenues or synergies"
Client clearing for over-the-counter derivatives is uneconomic under current capital requirements and the revenue generated by the business will have to increase "to a multiple of its current level" if banks are to stay in the game, JP Morgan has warned.
In its investor day presentation on February 24, the US bank said "current market economics are incompatible with capital rules in their current
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