Dive Summary:

• Three days after JPMorgan Chase & Co. faced questions from a U.S. Senate panel about market manipulation, the bank announced Friday it would seek “strategic alternatives” to spin-off or sell holdings including stake in power plants and traders in materials such as oil, gas, power, and coal.
• The move marks an about-turn for the bank that’s spent the last five years buildings the biggest commodities trading business on Wall Street., worth $14.3 billion in physical commodities. But regulatory pressures and narrowing margins are driving JPMorgan to jump ship.
• The bank is currently in negotiations with the Federal Energy Regulatory Commission (FERC) concerning a possible $400 million fine and other penalties for power market manipulation in California, sources close to the situation say. Analysts say JPMorgan will face a “hard sell” of its commodities in an already crowded commodities market. The bank may turn to foreign buyers like Brazil’s BTG Pactual or Macquarie not subject to Fed regulation.

From the article:  

“JPMorgan has said it may seek a joint venture, spin-out or sale, but has not said whether it will seek to keep the division whole or sell it in parts.”