JPMorgan Chase & Co has concluded an internal review and is pursuing strategic alternatives for its physical commodities business, amid increased political and regulatory scrutiny of these businesses.
The firm will explore ‘a sale, spinoff or strategic partnership’ of the physical commodities business, including its remaining holdings of commodities assets and its physical trading operations.
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During the process, the firm will continue to run its physical commodities business as a going concern and fully support ongoing client activities.
Following the internal review, the bank declared that it will stay fully committed to its traditional financial commodity business, including trading derivatives and its activities in precious metals.
The company will continue to make markets, provide liquidity and offer advice to companies and institutions that for years have relied on the company’s risk management expertise.
Brian Marchiony, JPMorgan spokesman, said:" The bank had considered many different factors before deciding to exit the business, including the impact of potential new rules and regulation."
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By GlobalDataJPMorgan Chase & Co is a financial services firm with assets of US$2.4 trillion and operations worldwide.
