- On Friday JP Morgan’s announced that it was putting its physical trading operations up for sale, after months of intensifying pressure. They’ve spent the last five years and billions of dollars building their commodity desk but now want out.
- Morgan’s are a huge presence in the commodities markets.
This article from Reuters takes a look at some of Morgan’s physical trading assets and operations, and at some of the controversies they have become embroiled in.
It makes for interesting weekend reading: Factbox: JPMorgan’s physical commodity trading
Also, more here:
JPMorgan is the first big player to exit physical commodities entirely and attention will now turn to Morgan Stanley and Goldman Sachs, which face similar pressures.
Friday’s announcement follows a week of intense scrutiny of Wall Street’s commodity operations, with U.S. lawmakers questioning whether banks should own warehouses and pipelines, and the U.S. Federal Reserve reviewing a landmark 2003 decision that allowed commercial banks to trade in physical markets.