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(Bloomberg) – JPMorgan Chase
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JPMorgan has become a central player in the aftermath of March’s nickel chaos, as it was the main counterpart to the large short position held through Tsingshan Holding Group Co. The American lender has had a close relationship with Tsingshan for years and led the organization. of the banks that accepted the company’s short position after the increase in value.
Tsingshan still has a short position in LME nickel, but it has shrunk to a fraction of its former length and nothing is maintained through JPMorgan, according to other people familiar with the matter, who asked not to be named because it is not public.
Tsingshan’s latest posts held through JPMorgan were closed in recent days, they said. This means JPMorgan pulled out of the saga, in which Tsingshan’s short position racked up losses of more than $10 billion in just two days in early March.
A JPMorgan spokesman declined to comment. Several to get feedback from Tsingshan failed.
Margin calls
Tsingshan’s inability to pay for its margin calls to its banks and agents was one of the main drivers of a 250% increase in value in early March. , and its banks, led by JPMorgan, agreed to avoid making margin calls for some time.
Since then, nickel costs have fallen due to considerations about the global economy, falling 3. 3% to $22,390 a tonne on Wednesday, and Tsingshan has reduced its position. It now has a short position of around 30,000 tons of nickel, other people said, opposites. to a peak of more than 150,000 tons.
In its first-quarter effects in April, JPMorgan reported a nickel-related loss of $120 million, in the form of a credit assessment adjustment in its exposure to the counterparties it named.
“We’re helping our consumers get through this,” chief executive Jamie Dimon said at the time. “We had a small loss this quarter, we’re going to get through it. We will do autopsies on what I think we did wrong and what sci might do later.
While the easing of Xiang’s position means that the early crisis of Tsingshan and its lenders is largely over, the recriminations have barely begun.
The Financial Conduct Authority and the Bank of England are reviewing the LME’s shares, while hedge fund Elliott Investment Management and trading firm Jane Street filed a lawsuit against the exchange this month.
(Adds the last nickel value to paragraph 7)
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