Mercuria deal was driven by economics, says JP Morgan

Bank says economics, not regulation, drove physical commodities sale

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JP Morgan's exit from physical commodities was largely driven by a reappraisal of the economics of the business, rather than pressure from the US Federal Reserve Board and other regulators, say the bank’s global co-heads of commodities in an exclusive interview.

The Fed's increasing scrutiny of the involvement of major US investment banks in physical commodity markets was "certainly part of our thinking" when JP Morgan made the strategic decision to sell or spin off its physical business in mid-

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