JPMorgan Commodities Unit to Be Sold for $3.5 Billion – History
From The New York Times:
Wall Street banks, facing tighter scrutiny from regulators, are moving to get out of the business of physical commodities trading.
On Wednesday, JPMorgan Chase took a big step in that direction, announcing that it had agreed to sell its physical commodities trading unit to the Mercuria Energy Group, a rapidly growing Swiss trading firm, for $3.5 billion in cash.
The Volcker Rule, part of the sweeping Dodd-Frank financial regulatory overhaul, restricts the ability of banks to trade for their own accounts. That extends to limits on some commodities trading.
The Federal Reserve is also considering limiting banks’ commodities activities to try to reduce their exposure to a potential source of instability.
More interesting for some of us is the history of the unit, captured by the Reuters article. Which company did you work for?