JPMorgan not so into metal anymore: A London commodities broker called Marex Spectron is in talks to buy the metals storage unit owned by JPMorgan Chase & Co. Two weeks ago—amid a crackdown from U.S. regulators on the role of banks in physical commodities—JPMorgan surprised even its own people by saying it was looking at "strategic alternatives" for its physical oil, gas, power and metals trading unit. The fate of JPMorgan Commodities Queen Blythe Masters remains unclear.
Meanwhile, Goldman Sachs and LME get sued over aluminum storage business. Allegedly Goldman and the LME have been engaging in anticompetitive and monopolistic behavior that no one, as far as I can tell, has successfully explained.
Morgan Stanley and Citigroup "cooperating" with Justice Department in CDS probe. For the uninitiated, when Morgan Stanley and Citigroup say they are "cooperating" with the U.S. Justice Department antitrust probe into the credit-default swaps market, that's a polite way of admitting that they are actually the ones under investigation. "Cooperating" sounds nice but what it really means is that you got a notice from Justice demanding you turn over a bunch of documents and answer questions. The investigation has been going on for four years now.
Who isn't underwriting the $8.9 billion sale of Barclays' shares? Let's see. Earlier we had word that Bank of America Merrill Lynch, Citigroup, Credit Suisse and Deutsche Bank were underwriters of the enormous offering, which is being undertaken to bring Barclays up to speed with regulator capital requirements. Added to the list of underwriters Monday: ABN AMRO, Banco Santander, BNP Paribas, ING Bank, JPMorgan, Mediobanca, Morgan Stanley, RBC Capital Markets and SMBC Nikko Capital Markets. Conspicuously absent? Goldman Sachs.