More fallout from the MF Global fraud story! Now it appears that JP Morgan will soon announce it purchased a 4.7% stake of London’s Metal Exchange (LME) from MF GLOBAL. The 4.7%, in addition, to JP Morgan’s already 6.2% stake in the LME would thrust JPM to the top as the largest shareholder of the LME “implying a total value of around 530 million pounds for the operator” according to the article below.
The dominos seem to be falling in favor of, none other than, JP Morgan. What a coincidence? I wonder if this new position as majority shareholder will help JP Morgan cover its silver shorts and help out the silver and gold bulls. Time will tell.
JP Morgan to buy MF Global’s London Metals Exchange stake
LONDON (Reuters) – J.P. Morgan will soon announce it has bought a 4.7 percent stake in the London Metal Exchange (TSXV:LME.V) from defunct U.S. brokerage MF Global, two people familiar with the situation said on Tuesday, making it the exchange’s largest shareholder.
The U.S. investment bank would pay 25 million ($39.1 million) pounds for the stake in the world’s largest metal market, the sources said, implying a total value of around 530 million pounds for the operator.
An announcement could come as early as this week.
The sale to J.P. Morgan could shift the odds in the takeover battle for the LME, one of the few exchanges to still operate an open outcry ring, which has thrown its doors open to a potential 1 billion pound takeover.
J.P. Morgan, which already holds a 6.2 percent in the LME, declined to comment. The LME also declined to comment, as did KPMG, the administrators for MF Global’s UK unit.
J.P. Morgan would separately also buy the B-shares held by MF Global for 2 million pounds, one of the sources said.
Industry sources told Reuters last Wednesday that MF Global’s ring dealing seat on the LME will be bought by U.S.-based broker INTL FCStone.
Selling the stake would be a boost for creditors of the futures brokerage, which filed for bankruptcy protection last month, and for its clients, some of whom have seen their positions frozen ever since.
The shortfall of customer funds at MF Global may be around $1.2 billion, about double initial estimates from regulators, the trustee liquidating the company said on Monday.
Regulators are investigating what happened to the money and whether MF Global may have improperly mixed customer money with its own — a major violation of industry rules. No charges have been filed.
($1 = 0.6400 British pounds)
http://finance.yahoo.com/news/jp-morgan-buy-mf-global-144656247.html
Opinionated Bloviator says:
The first step in creating a “Divorced currency” is to gain control over the GOLD that backs it.
Who controls JPMorgan, Goldman Sacks?
The plan is simple – confiscate the physical whilst nuking those who bet against the US dollar (via manipulation of the paper GLD price).
When the time comes GLD and SLV WILL go to zero, actual physical will go to ~ $10000+, the physical price of silver will be ~ $100.
This will benefit us all, provided we can hold onto our physical WHEN the government comes to confiscate it.
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22nd November 2011 at 7:13 pm
TeresaE says:
Confiscate what?!?
Those coins I bought were presents for nieces and nephews and friends. So solly!
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22nd November 2011 at 8:16 pm
AKAnon says:
Teresa said “Confiscate what?”
Help me out here, folks. The rules for a lot of stuff is different here in the Last Frontier than down south. Do you have to report small sales of silver? I have purchased 20 oz at a time, and individual gold coins, on a first name, cash & carry basis (same as private firearms sales). I get a hand-written receipt, but my name is not on it unless I offer it. My dealer told me there was a threshold for reporting, but I don’t recall what it was-high enough not to matter to me.
Also, I buy ammo & reloading supplies cash, no name. I went to buy some ammo at Sports Authority the other day-they wanted me to sign for it & show ID; I told them to get bent. Do ya’ll have to do paperwork to buy PMs? How about ammunition? Just curious.
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22nd November 2011 at 9:14 pm