Bank of America Corp. is cutting about a third of its propriety trading jobs to comply with new regulations on banks, according to a person familiar with the situation.
The person requested anonymity because details had not yet been made public.
The overhaul of U.S. financial regulations signed into law in July limits proprietary trading in which a bank trades on its own accounts for its own profit.
The restrictions on proprietary trading are part of the Volcker rule, which is named after Paul Volcker, a former Federal Reserve chairman who advises the Obama administration. Volcker says banks should stick to taking deposits and making loans. He thinks deal making and investment banking should be left to firms that taxpayers wouldn't have to bail out.
The elimination of the 25 or so proprietary trading jobs at Charlotte, N.C.-based Bank of America is a direct result of the new regulations, according to the person. The positions are located around the globe, the person said.
JPMorgan Chase & Co. is also shutting down its proprietary trading desks and eliminating about 80 jobs to comply with new restrictions on investment banks.
Bank of America bought investment bank Merrill Lynch last year.