JPMorgan scales down metals business – Bloomberg News

(Reuters) -JPMorgan Chase & Co has stopped working with dozens of base metals clients and slashed bonuses of its bankers after last year’s nickel crisis, Bloomberg News reported on Thursday, citing people familiar with the matter.

The bank did not immediately respond to Reuters request for comment.

JPMorgan (NYSE:)’s metals business has been under strict internal scrutiny due to the bank’s role in the upheaval last year, when the London Metal Exchange (LME) was forced to suspend nickel trading after the metal’s prices doubled.

The surge was attributed to China’s Tsingshan Holding Group buying large amounts of nickel to reduce its short positions in the metal.

JPMorgan has cut numerous base metals clients in Asia, particularly stopping business with privately owned Chinese companies, according to the Bloomberg report.

The bank is continuing to work only with a few large, long-standing clients in the region, the report added.