“J.P. Morgan Chase & Co. is looking to scale back its dealings with banks outside the U.S., according to a memo and people close to the situation, as it tries to reduce risk and shore up controls in a period of heightened regulatory scrutiny.

“The largest U.S. bank by assets has decided not to take on any new business with thousands of foreign correspondent banks for which it processes transactions and clears dollar payments, these people said. It also won’t accept any new clients, the people added.

“An internal review is under way that could result in J.P. Morgan cutting ties with some foreign institutions, according to a person familiar with the matter.

“‘It’s important for us to pause and assess our business, particularly in select markets, to ensure we are well-positioned to meet our responsibilities for the long term,’ a spokesman said.”

***

Read full Wall Street Journal article here