| The number of major investment banks able to be successful commodities players will fall to around five by 2016, according to three heads of investment bank commodities operations. One said: “What we’re seeing now is some of the banks retrenching because they don’t actually know how to make money in commodities anymore or compete with the commodities trading houses. Most banks have relatively generic offerings.”
Seb Walker, managing partner at Tricumen, a consultancy that analyses investment bank revenues, said: “The costs of a big-sized commodities business are huge and it is definitely a market where you need to be in it properly or you’re out.”..............................................Full Article: Source
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