JP Morgan to tell hearing its focus is on commodity derivatives

JP Morgan will refocus its commodities activities on financial derivatives and continue to operate in conformity with the appropriate regulations, the US bank will tell a US Senate hearing on Thursday.

The hearing, which focuses on the role of banks in physical commodities, will receive witness statements from the US bank as well as other including its industry peers Goldman Sachs and Morgan Stanley. Since the series of hearings began in 2013, JP Morgan has sold the majority of its physical commodities business, including its Henry Bath warehouse unit, to Mercuria Energy Group.  One key focus of the hearings to date has been the role played by warehouse firms in the creation of lengthy queues to access metal that they stored. But JP Morgan’s Henry Bath unit has never had long queues at its units, suggesting that scrutiny of the bank at the hearing is more likely to fall on its energy business as well as the concept of its broader involvement in physical commodities activities. The...


Andrea Hotter

November 19, 2014

22:13 GMT

New York