JPMorgan Chase & Co. is pursuing strategic alternatives for
its physical commodities business, including its remaining
holdings of commodities assets and its physical trading
The company said it
had concluded an internal review of the businesses, which
include its Henry Bath metals warehousing operations, and that
it plans to explore a number of options.
These include, but are
not limited to a sale, spinoff or strategic partnership of its
physical commodities business, JPMorgan said.
"During the process,
the firm will continue to run its physical commodities business
as a going concern and fully support ongoing client
activities," it added.
The announcement came
just three days after the bank came under scrutiny at a hearing
of the U.S. Senate into whether U.S. holding banks should be
active in physical commodities and hold assets in that sector
amm.com, July 23).
But the bank
wont be exiting its traditional banking activities in the
commodity markets, including financial derivatives and the
vaulting and trading of precious metals; it said it remains
"fully committed" to this part of its business, and will
continue to make markets, provide liquidity and offer advice to