This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

JPMorgan Exploring Sale of Physical Commodities As Regulators Step Up Scrutiny

NEW YORK ( TheStreet) - JPMorgan Chase (JPM - Get Report) said Friday that it will explore the sale of its physical commodities business.

Other strategic alternatives include a spin-off or a strategic partnership.

During the process, it will continue to operate the business as a going concern. The bank also remains committed to traditional activities in the commodities market, including financial derivatives and the vaulting and trading of precious metals, it said.

The Commodities Futures and Trading Commission (CFTC) recently began a probe on Wall Street's role in the metals warehousing business following complaints that banks and traders are distorting supplies and artificially inflating prices.

Last week, the Federal Reserve said it was reviewing a 2003 decision that allowed banks to trade in physical commodities markets.

Wall Street's role in the warehousing of physical commodities has attracted scrutiny in the past week after The New York Times detailed how Goldman Sachs (GS - Get Report) was profiting from the warehousing of aluminum. JPMorgan, it said, had made equally deep forays into the copper market.

Since 2010, four of the six largest warehouses at the London Metal Exchange have been bought by investment banks or traders, according to a Reuters report .

-- Written by Shanthi Bharatwaj in New York.

>Contact by Email.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
GS $187.75 0.00%
JPM $64.13 0.00%
AAPL $113.29 0.00%
FB $91.01 0.00%
GOOG $630.38 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs