JP Morgan Chase Bank has asked James Koutoulas, co-founder of the Commodity Customer Coalition (CCC) and CEO of Typhon Capital Management LLC,to change his bank as they no longer want his business. The point is basically moot as Koutoulas was already in the process of changing banks. In fact, a few days before he received the letter from JP Morgan VP Ann Stankiewicz asking him to move, Koutoulas called on all 38,000 former MF Global futures account holders to boycott JP Morgan.
Koutoulas sought to represent former MF Global customers shortly after the bankruptcy filing and one of his first actions was to object to a filing by JP Morgan seeking priority status in the liquidation ahead of customers. Since then Koutoulas has claimed that JP Morgan has multiple conflicts as it was a major custodial bank of MF Global as well as one of its primary creditors. JP Morgan is also on the MF Global Holdings Creditors Committee. He also noted that JP Morgan is allegedly attempting to buy customer claims at a discount, so called “Vulture claim buying.”
JP Morgan also reportedly bought some of the sovereign debt positions held by MF Global that got it in trouble in the first place.
Koutoulas and the CCC is not simply asking customers to boycott JP Morgan, they are also recommending that futures customers do not do business with any futures broker that uses JP Morgan as a custodial bank.