JP Morgan's $1.7 Billion Deal to Boost Its Stance in Global Commodities

In the global financial services market, governments are becoming the kingmakers. Just look at J.P. Morgan Chase's (JPM) $1.7 billion acquisition of the non-US operations of RBS Sempra Commodities. Royal Bank of Scotland Group (RBS), which is the co-owner of the joint venture along with Sempra Energy (SRE), had little choice in the matter. The firm received $71 billion in taxpayer funds because of the global financial crisis and as a result, European Union rules required that the holding be divested.