Jeff Smith 2:30 p.m., March 13
JP Morgan Will Buy Part of Sempra Trading Business Tuesday
The Wall Street Journal is reporting today (Feb. 15) that JP Morgan Chase is expected to announce as early as tomorrow (Feb. 16) that it has agreed to pay $1.7 billion for the less juicy parts of RBS Sempra Commodities, the commodities trading operation run by troubled Royal Bank of Scotland and San Diego's Sempra Energy. The more valuable North American part of the business will be excluded, but remains for sale, according to the Journal. JP Morgan originally wanted to buy the whole operation, but the Obama administration has proposed reforms that could force large banks to get out of proprietary trading operations such as RBS Sempra, says the Journal. While the Obama proposal has not become law, the prospect apparently frightened JP Morgan.