JPMorgan Commodities Exit May Sap Liquidity Until Others Step in
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A decision by JPMorgan Chase & Co. to exit its physical commodities business would temporarily reduce market liquidity before other companies quickly take its place, according to analysts and traders.
New York-based JPMorgan, the largest U.S. bank, said yesterday that it’s “pursuing strategic alternatives,” including the sale or spinoff of its commodities business, after an internal review. The statement came three days after a congressional hearing investigated whether deposit-taking banks should be allowed to trade raw materials such as oil and industrial metals.