JPMorgan Mulls Physical Commodities Exit Amid U.S. ReviewSubmitted by DJP333 on Fri, 07/26/2013 - 19:28
By Dawn Kopecki | Jul 26, 2013
JPMorgan Chase & Co. (JPM) said it plans to get out of the business of owning and trading physical commodities ranging from metals to oil, three days after a congressional panel questioned whether banks are using their ownership of raw materials to manipulate markets.
The statement also comes as JPMorgan negotiates a settlement with the Federal Energy Regulatory Commission that may include a $400 million fine and other penalties, according to a person familiar with the negotiations.
JPMorgan, the largest U.S. bank, could sell or spin off holdings that include warehouses, stakes in power plants and traders in materials including gas, power and coal. The company estimated the value of its physical commodities at $14.3 billion as of March 31, according to a company filing.