A Mr 60,000 peptide that modulates the activity of the Mr 35,000 catalytic subunit of a type 2A phosphatase has been isolated from rabbit reticulocytes and partially characterized. The peptide appears to be a subunit of the intact phosphatase that has been isolated under nondenaturing conditions. The Mr 60,000 peptide itself is catalytically inactive. However, it binds to the Mr 35,000 catalytic subunit causing a decrease in its activity for dephosphorylation of phosphorylated 40 S ribosomal subunits, but an increase in dephosphorylation of peptide initiation factor 2 phosphorylated in its alpha subunit. Reassociation of the Mr 60,000 and the Mr 35,000 peptides yields a two-subunit phosphatase with a Stokes radius of 42 A; sedimentation coefficient, S20,w of 5.1 S; molecular weight of 89,000. These parameters are compared to those of the native three-subunit enzyme and those of the isolated Mr 35,000 and 60,000 peptides.
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