JPMorgan Is Reviewing Commodity Exposure After Nickel Chaos
- Checks are focused on base metals and LME-related businesses
- Any pullback by JPMorgan could hit commodity market liquidity
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JPMorgan Chase & Co. is reviewing its business with some commodity clients after last month’s nickel short squeeze, a move that threatens to drain more liquidity out of the sector.
Senior management at JPMorgan has asked teams around the world to conduct fresh due diligence on some existing clients, including metals traders and oil refiners, according to people familiar with the situation. Risk assessments are also being conducted on certain financing functions, said the people, who asked not to be identified as the information is private.