JPMorgan Chase is to scrap its standalone proprietary trading desk, highlighting how the dearth of investment opportunities is prompting banks to retreat from in-house hedge funds that had thrived before the turmoil.

People close to the situation said the decision to fold the 80-strong global proprietary trading unit into JPMorgan’s other trading operations could result in job losses. The bank is believed to be looking at other areas where operations overlap and could announce further reorganisations and job cuts in months to come.