Barclays exits commodities trading

Discussion in 'Wall St. News' started by Grandluxe, Apr 21, 2014.

  1. April 21, 2014, 8:45 a.m. EDT
    Barclays to exit most commodities trading

    LONDON-- Barclays PLC is to sell or exit most of its commodities businesses as part of an effort to shrink its investment bank and improve returns.

    Exiting commodities has been seen by analysts as a likely outcome of Barclays’s review of its investment bank. Barclays and other banks have increasingly found it difficult to make acceptable returns in high-cost, low-margin global commodities trading, and the U.S. Federal Reserve is considering putting fresh limits on banks’ exposure to commodities markets to address concerns about potential conflicts of interest.

    The U.K. bank shut down its U.S. and European power trading desks in February, after deciding they didn’t meet “economic and strategic criteria.

    Barclays is one of the top five banks in the global commodities business, and it is expected to announce its reduced activities to staff on Tuesday, the source said.

    It is expected to involve sizeable cuts to staff, although the source did not specify how many people were likely to go.

    http://www.marketwatch.com/story/ba...-2014-04-21-81034451?link=MW_home_latest_news