JPMorgan Said to Break Up Hedge Fund, Buyout Unit

June 12, 2009
By MoneyAisle

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According to Bloomberg, “JPMorgan Chase & Co. is disbanding an investment-banking unit that wagers the company’s money on hedge funds, leveraged buyouts and real estate.”
With the exception of a team that focuses specifically on Asia, the company will be closing the principal investment management group’s hedge-fund business as well as the private-equity division.

According to Peter Hahn, a former managing director at Citigroup, “Banks invested in hedge funds for a variety of new business opportunities which aren’t likely to be around again for some time.”