As new regulations begin to put the squeeze on big banks, their top dealmakers are exiting the industry.
JPMorgan Chase will be losing Mike Stewart, its London-based global head of proprietary trading, to a hedge fund, The New York Times reported Monday.
As the Times notes, Stewart's exit comes as JPMorgan prepares to permanently shutter its proprietary trading group later this year in response to the Volcker rule -- a controversial provision of Dodd-Frank financial reform legislation that restricts the practice. Proprietary trading is the investment of a financial institution's own money (as opposed to depositors' money) for profit.
Stewart's departure comes amidst a broader exodus of top dealmakers from some of the largest banks on Wall Street. In January, for example, two longtime dealmakers and members of the Goldman Sachs' management committee were making their exit amid "struggles with the downturn in its huge trading operation," as the Wall Street Journal characterized it at the time. That followed the departure of fifty partners from the firm in 2011, according to The NYT.
Not all of the departures are voluntary, of course. The global financial services industry lost more than 200,000 jobs in 2011 from layoffs and firings, according to a November Bloomberg report.