When it comes to commodities, JPMorgan (NYSE: JPM) has quickly made itself a powerhouse, generating controversy in several areas. The latest: the bank has reduced substantially its once-massive position in the silver market. The move came amid a controversy that led to accusations by silver investors that large short positions held by JPMorgan and others were depressing the price of silver.

The CFTC has apparently opened an investigation. In previous investigations, however, it did not find evidence of manipulation.

"It is absolutely incorrect to say or imply that the Nymex, CFTC or any other exchange or regulator has instructed or asked us to reduce our position," the bank said in a response to the Financial Times.

The silver controversy coincides with a separate copper controversy, which was prompted by a massive buying spree by JPMorgan. British media held that the bank bought $1.5 billion worth of copper in a substantial trade characterized by the LME as "between 50 percent and 80 percent" of the 350,000 tons in reserves. The spot price soared to its highest level since October 2008.

That stoked fears by some that massive buying by firms, including many who want to launch commodities ETFs, were building market bubbles. Recall also that back in April, a JPMorgan commodities trader named Chan Bhima lost $130 million due to ill-timed wagers on European coal prices.

For more:
- here's the FT article

Related Articles:
JPMorgan corners the copper market?
Flash Crash concerns in the commodities
Is the gold market setting up ETFs for chaos?