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Wednesday, November 27, 2013

TIMELINE-JPMorgan and its Henry Bath metals warehouse, (NYSE: JPM)

JPMorgan Chase & Co decided in May to divest its Henry Bath metal warehousing company after a three-year struggle to conform the business to banking regulations, according to letters received by Reuters through a Freedom of Information Act request. Here is a timeline of the significant events surrounding JPMorgan's negotiations with the Federal Reserve after the bank bought the business in 2010.JPMorgan put its entire physical commodities trading business up for sale in July.July 1, 2010 - JPMorgan acquires Henry Bath as part of its RBS Sempra purchase. Has two years under the Bank Holding Company Act to either sell the business or conform it as a passive merchant banking investment without operational control. October 2010 - JPMorgan announces plans to launch a physically backed copper exchange-traded fund (ETF) that would use the metal as collateral stored in Henry Bath warehouses. February 2012 - Reuters reports JPMorgan has drawn up a strategy to build a big metals stockpile in two Henry Bath locations and is trucking aluminum from a Glencore-owned warehouse to its own in Rotterdam. June 29, 2012 - JPMorgan's commodity arm (JPMC) requests a one-year extension to the period it can hold Henry Bath, to "provide adequate time for JPMC to complete the necessary steps to conform its holding in Henry Bath to the requirements of merchant banking." Aug. 16, 2012 - Following conversations with Federal Reserve board staff, JPMC resubmits application. JPMC now requests a three-year extension. Nov. 16, 2012 - Federal Reserve approves a one-year extension to July 1, 2013. As a condition of the extension, the Fed asks JPMC to file a detailed plan by Dec. 16, 2012 showing how it will conform to a merchant banking authority or divest Henry Bath by the summer. The Fed also requests that JPMC file quarterly reports detailing what it has done to conform, or divest the Henry Bath asset in accordance with this plan.Dec. 13, 2012 - JPMC files first quarterly report on what it has done to conform or divest Henry Bath. March 27, 2013 - JPMC files second quarterly report to Fed detailing what it has done so far. The letter says the bank is trying to arrange a sale, and is working to dilute the percentage of metal in Henry Bath warehouses owned by JPMC.

JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company. Shares of JPM fell by 0.83% or $-0.48/share to $57.17. In the past year, the shares have traded as low as $39.88 and as high as $58.14. On average, 20560200 shares of JPM exchange hands on a given day and today's volume is recorded at 16267215.