Many of the world's top investment banks have pulled back in commodities and quit energy entirely
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, writes Joe
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.
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