For the special case mentioned (no controlling terminal), this is not specific 
to xterm,
and is unlikely to be a bug in the terminal emulator.

I just verified that I can see identical results with xterm, urxvt, pterm, 
konsole and lxterminal.
(perhaps vte-based stuff differs, but it's not worth considering due to lack of 
command-line compatibility)

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https://bugs.launchpad.net/bugs/1199462

Title:
  Job control is off in the subshell

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