- According to the WSJ, JPMorgan Chase kept a bag of stones in a warehouse in the Netherlands that it thought was nickel.
- The London Metal Exchange revealed on Friday that the bags contained stones rather than nickel.
- According to the WSJ, the bag is owned by JPMorgan Chase.
The London Metal Exchange revealed a startling mix-up last week at a warehouse in the Dutch port city of Rotterdam.
A warehouse operator weighed a bag believed to contain 54 tons of nickel, but found it to be filled with stones. according to To The Wall Street Journal.
The unfortunate owner of these bags appears to be none other than JP Morgan Chase. Said on Monday, citing people familiar with the matter.
If nickel was included, the bag would be worth $1.3 million at current prices, or 0.14% of nickel stocks, Bloomberg said. reportThis means the turmoil will have a relatively small impact on the metals market, but casts doubt on the security of the LME’s contracts. “In an industry riddled with scandals, LME contracts are definitely seen as safe,” Bloomberg said. Said.
The LME first announced the mix-up last Friday, but did not disclose the supposed owner of the nickel bags or the warehouse where they were stored. according to To The Wall Street Journal. But a person familiar with the matter said the warehouse was owned and operated by logistics company Access World. according to to the journal.
A spokesperson for Access World told Insider: The suspension of the nine warrants referred to in LME Notice 23/044 was an isolated case, specific to one warehouse in Rotterdam. ”
Access World, rather than JPMorgan Chase, the Journal, is likely to bear the cost of the mix-up, namely the bill. SaidIt was the company’s responsibility to protect the metal stockpiles on site.
JPMorgan Chase reportedly purchased the bag years ago and is still an active player in the big metal, the Journal said. Said.
JPMorgan Chase and LME did not immediately respond to insider requests for comment.