JPMorgan Chase (JPM) plans to sell or spin off its physical commodities unit, as regulatory scrutiny on big banks' commodities holdings and trading operations mounts.
The nation's largest bank
The bank's announcement comes at the end of a week when lawmakers and the media closely scrutinized big banks' investments in non-financial businesses, including oil refineries, aluminum warehouses and other commodities. A
Senators on Tuesday
JPMorgan is also reportedly in talks to
The bank said Friday that as it considers how to dispose of its commodities unit it will continue to run it "as a going concern and fully support ongoing client activities." JPMorgan Chase also said it remains committed to more traditional banking activities in the commodity markets, "including financial derivatives and the vaulting and trading of precious metals."