Deutsche Bank announced today it will exit most commodity businesses around the world.
They blame ‘falling prices’ while noting greater regulatory scrutiny in proprietary trading. Goldman, JPMorgan, RBS, UBS and Morgan Stanley have also scaled out of commodities or are considering it.
Funny, with less competition you would thing the remaining players would want to stick around and eat up the market share. Unless, of course, the game wasn’t really trading commodities but manipulating them and that with regulators finally waking up after Coca-Cola got sick of getting ripped off for aluminum they are redirecting resources where there is less scrutiny.
