Tuesday, November 22, 2011

JP Morgan to Acquire MF Globals Stake in the London Metals Exchange

Apparently The Morgue is taking preventive actions to ensure that their London side of the gold and silver manipulation is never jeopardized in the way the CFTC position limits ruling is jeopardizing its US operations.
Bloomberg reports this morning that JPM is nearing a deal to acquire MF Global's 600k share position in the LME. The move would bring JP Morgan's stake in the LME to 1.4 million shares, up from 550k in 2010.
If you're worried about exchange regulation, no worries.....buy the exchange!

JPMorgan Chase & Co. (JPM) is nearing a deal to acquire MF Global (MF) Holding Inc.’s stake in the London Metal Exchange for about 25 million pounds ($39 million), according to a person familiar with the process.

The deal values the exchange at about 530 million pounds, the person said, declining to be identified because the talks are private. An announcement may be made as soon as today, a second person with knowledge of the deal said.
The subsidiary owns 600,000 ordinary shares out of 12.9 million, a 4.7 percent stake, and 25,000 nonvoting B shares, according to a U.K. Companies House filing on Oct. 24.
JPMorgan has raised its holdings in the LME over the past year. It owned 800,000 shares as of Oct. 24, compared with 550,000 shares a year earlier, according to filings with Companies House.
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