News Summary on JPM and CU/AG Positions

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Seems like maybe JPM might be now playing the the Copper Market
http://af.reuters.com/article/metalsNew ... 3520101214

NEW YORK, Dec 14 (Reuters) - JPMorgan's (JPM.N: Quote) commodity
business was uncomfortably in the spotlight on both sides of
the Atlantic on Tuesday after reports that it had amassed a
larger long position in copper and was unwinding a big silver
short.

The reports placed the bank in the public eye as U.S. and
European regulators are cracking down on commodity market
concentration to prevent volatile price spikes, prompting
debate about whether the positions reflect growing customer
business at a top-tier commodity bank or aggressive trading.

JP Morgan is reducing a large position in U.S. silver
futures, the Financial Times reported on Tuesday, citing a
source familiar with the matter. Two months ago the bank and
HSBC Holdings Plc (HSBA.L: Quote) were sued by investors who accused
them of conspiring to drive down silver prices.

And in Europe, data from the London Metal Exchange showed
that a single entity had increased its control over warehouse
copper stocks and cash contracts to more than 90 percent, up
from a 50-80 percent holding reported for the past several
weeks. [ID:nLDE6BD136]

A spokesman for JPMorgan, which had been reported as
holding the 50-80 percent position, denied that it held over 90
percent of stock warrants, but declined comment on whether it
had a dominant position of less than that. [ID:nLDE6BD1U5]

Traders said both holdings could be tied to the bank's
large customer and custodian business rather than traders
building a big position with the bank's own capital, but a
former regulator said the positions could raise eyebrows.

"I don't know whether JPMorgan has done anything wrong, but
I would say this raises serious questions, and requires further
investigation. It's quite unusual," said Michael Greenberger,
law professor University of Maryland, former head of CFTC's
trading and markets division.

"I suspect the CFTC's enforcement director may look into
this to determine whether there has been any manipulation, even
if there are no position limits to contend with," he said.

Others said it was almost unthinkable that any bank would
risk regulators' ire so soon after the financial crisis, adding
that it was probably a combination of many positions, possibly
hedging on behalf of customers or physical inventories.

"I find it very hard to believe that JPMorgan would run
afoul of authorities which would eventually find out if had
committed any malfeasance," said Dennis Gartman, publisher of
the Gartman Letter.

JPMorgan stores metal on behalf of the world's largest
physically backed silver fund, the iShares Silver Trust (SLV: Quote).

"It's like asking a grain elevator if it has any short
position in corn, when all it does is hedging against its long
position in its grain storage," Gartman said.

A JPMorgan spokeswoman in New York declined immediate
comment when contacted by Reuters.

The company's silver futures positions would be "materially
smaller" in the future, the FT reported the source as saying.

U.S. silver futures barely moved on the news, with the
benchmark March silver contract SIH1 settled up 0.6 percent
at $29.788 an ounce on the COMEX division of NYMEX on Tuesday.