JPMorgan takes gold collateral, inflation in focus
US News • February 2011 • Views: 916
J.P. Morgan Chase said on Monday it would accept physical gold as collateral with its counterparties as a growing number of clients look to use bullion as a hedge against inflation.
The bank, which is one of the custodians of physical metals for some of the world’s largest precious-metal backed exchange-traded funds, said it would take gold as collateral to satisfy securities lending and repurchase obligations with counterparties.