| Some of the world’s largest banks are ditching their commodities business in moves that will become increasingly hard to reverse as a result of increasing regulatory pressures, says Joe Parsons. Barclays last week became the latest major bank to announce it will exit the majority of its commodities business, which includes energy and agricultural trading.
The move came after rivals JP Morgan, Deutsche and Morgan Stanley also either sold or said they will scale down a large part of their commodities business. Banks have tended to exit and re-enter markets at different times due to cyclical factors such as prices, demand for financing and levels of risk, according to Douglas Ziruys, senior vice president, Europe, of Fimetrix, a market intelligence firm for financial institutions...............................................Full Article: Source
|