Someone might be getting fired after this blundered transaction. Investors at a large bank would up purchasing bags of stone instead of nickel bags like they thought they were buying.
JP Morgan Chase wound up with a horrible replacement for what they believed were nickel bags they were trying to add to the conglomerate’s portfolio. The bank purchased 54 metric tons of nickel, commonly used in steel and electric-vehicle batteries.
The $1.3 million bags purchased ended up being full of stones, which is worth much, much less. Despite the sale happening years ago, it was only discovered recently when someone looked into the purchase.
Then, on March 17, 2023, the London Metal Exchange announced a mix-up at a warehouse overseas involving its nickel supply but it didn’t say where or who it involved, just that “the invalidation of nine nickel warrants.”
It was reported that the bags belonged to JP Morgan Chase and the warehouse in Rotterdam, Netherlands belongs to Access World. Access World is expected to end up taking the financial hit since it was supposed to check the metal and keep it safe.
Source: https://www.wsj.com/livecoverage/stock-market-news-today-03-20-2023/card/it-turns-out-that-jpmorgan-bought-the-nickel-that-turned-out-to-be-stones-whWn9TqZaksdTPcGyyAi