Metals warehousing and trading exploded as a big issue last year as lots of corporate ends users voiced complaints about the high prices of metals and the practices of big LME members, most notably Goldman Sachs and JPMorgan.

Goldman Sachs has been roundly criticized for its warehouse practices--recall that it owns Metro International, a 19-building structure in Detroit. The London Metals Exchange (LME), which is built on the idea of physical delivery of the commodities, has been beset with complaints about various delivery delays recently from the likes of Coca Cola. JPMorgan and Glencore also run large metals warehousing and trading operations.

The LME has been seeking a buyer for the past six months, and about 10 suitors have been mentioned. A deal would provide a windfall for banks like Goldman Sachs and JPMorgan, which have invested in the LME. But Reuters reports that such a windfall may not be worth the uncertainty that a new owner would bring.

Top bank stakeholders "are likely to amass enough support to block a sale they fear would bring a more heavily regulated owner and hurt their lucrative warehousing businesses," it reports. JPMorgan and Goldman Sachs together own about 20 percent of the LME. Blocking a deal would require about 25 percent ownership.

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