(Bloomberg) — JPMorgan Chase & Co. no longer has any exposure to the nickel bet that rocked global metals markets earlier this year, after a drop in prices on the London Metal Exchange allowed the tycoon at the center of the squeeze to exit his positions with the bank.
JPMorgan emerged as a central player in the fallout from March’s nickel chaos because it was the largest counterparty to the massive short position held by Chinese entrepreneur Xiang Guangda’s Tsingshan Holding Group Co.
The US lender has had a close relationship for years with Tsingshan, and led the group of banks that agreed to backstop the company’s short position after prices spiked.
Tsingshan still has a short position in LME nickel, but it has been reduced to a fraction of its previous size and none of it is held through JPMorgan, according to people familiar with the matter, who asked not to be named as it’s not public.
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