JPMorgan Chase is to resume direct control of its back office investment accounting operations in the US, terminating a pre-merger agreement struck between the former JP Morgan Investment Management and the Bank of New York.
Under a revised contract, The Bank of New York will continue to service the London-based institutional investment management business of JPMorgan Chase.
Neither party is putting a value on the US business, which was handed over to BoNY under an agreement for processing signed prior to JPMorgan's merger with Chase - which offers similar back office accounting functions. BoNY sealed the contract in 1998, in a move which was heralded at the time as the first truly global outsourcing deal.
The final terms of the revised deal, including any penalty payments to BoNY, will be determined at a later date, say the companies.