JPMorgan Reportedly Owned a Bunch of Rocks That Was Supposed to Be $1.3 Million of Nickel

A scandal is underway at the London Metal Exchange.

Paul Hackett / Contributor I Getty ImagesThe London Metal Exchange in 2011.

Call it getting nickeled and dimed.

JPMorgan Chase is reportedly the victim of a scandal rocking the world of international metal trading, according to Bloomberg.

The financial services company owned nine “contracts” (i.e., promises to buy or sell certain amounts of nickel at a later date, or futures) of nickel worth about $1.3 million.

Those nine contracts, or portions of nickel, turned out to be bags of (worthless) rocks.

The London Metal Exchange (LME) is a marketplace for things like copper, zinc, and tin and serves as a price setter and helps regulate the trade in general. At one of its approved warehouses in Rotterdam, LME said they received a report that delivery from the facility was just rocks — not nickel. (The LME does not operate warehouses but “approves” them. This warehouse is run by the logistics company, Access World.)

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